The tax incentive is over, now what?
If you were eligible for the tax incentive of up to $8,000 for purchasing a home under President Obama’s plan and did not get an accepted offer from a seller by April 30, 2010 then you have missed the incentive but you are not alone. Many people speculate that there might be another type of plan in the future. But for now all it is is just that; pure speculation.
So you missed the tax incentive, things could be a lot worse. The price of homes could be that of what they were in 2005. What I’m saying is that although there is not a tax incentive at this time it is still a GREAT time to buy. We are closing loans for our borrowers for homes recently puchased for as low as $45,000 or great deals of homes in the $300,000 plus range. So whatever your budget there has not been a better time to buy than now. Down payment for FHA loans are still only 3.5%. There is talk that FHA may raise that to 5% but for now it is still only 3.5%. Rates are remaining low and recently the Feds decided to keep them as they are.
We are seeing some competition out there from the contracts we’ve received from our borrowers. One way we can monitor that is we are having appraisals come in significantly below contract price in some cases and have even had buyers pay over appraised value. That also tells us that there are still great values out there to be had. If a buyer believes he/she has such a great deal that they are willing to pay over the appraised value, well that tells us it was too good of a deal to pass up. So although the President’s incentive is gone, there is still an incentive to buy now! That incentive is getting a great deal and a low fixed rate and it lies before you if you are looking to take that step.
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