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Three weeks remain to get in contract on a home by 4/30(must close by 6/30) and take advantage of the federal tax credits - $8,000 1st time homebuyer tax credit and the $6,500 repeat/move up tax credit. In addition, California state government is offering a tax credit for new home purchase and 1st time homebuyer - 5% of the purchase price with a maximum of $10,000 credit. These will take effect 5/1. Low home prices, good interest rates and both federal & state tax credits are some great reasons to consider purchasing.
Though requirements for loans are stricter, money is available. FHA financing requires a downpayment of only 3.5% of purchase price & credit requirements are much more flexible.
Pending sales in February came in with a 8.2% boost - this is an indicator of sales to close in the next couple of months and is a good sign for the housing market!
Acquire, rehab a house and list for sale with a bigger pool of buyers & quicker return, now that the 90 day FHA rule as been suspended for at least this year. With the 1st time homebuyer $8,000 tax credit deadline of 4/30/10, I anticipate there will be a high demand of buyers out there in the next few months. Some great opportunity for investors, now! See Washinton Post article: http://www.washingtonpost.com/wp-dyn/content/article/2010/01/28/AR2010012804704.html?wprss=rss_business
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With the suspension of the FHA flipping rule for at least one year the opportunities for investors and first time... (more)With the suspension of the FHA flipping rule for at least one year the opportunities for investors and first time homebuyers, alike great increase. I would think this will increase the pool of homes available to FHA buyers and investors who now don't have to wait 90days to turn a rehab.Mark GelowFebruary 2, 2010 12:27PM
It's unbelievable how low interest rates are right now. 30 year fixed loan is at 4.5%, as of today! Now is the time to get a great bargain on a home at an extremely low interest rate. This equates to low monthly mortgage payments! The rates will not stay this way for long. It is predicted that in 3 to 4 months they will be climbing back up. It's pretty exciting for anyone out there looking to buy a home right now. Lock in the good rate, now.
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Yes, Ingrid it is amazing how low interest rates are. The market continues to bounce between 4.5% on a 30... (more)Yes, Ingrid it is amazing how low interest rates are. The market continues to bounce between 4.5% on a 30 year fixed rate to 4.875%. If a borrower/buyer acquired a loan for $300,000.00 at a rate of 4.5% the principal and interest payment would be $1520.06 versus where rates have been in the past at 5.5%. On a loan at 5.5% the payment is $1703.37. There are several programs available to consumers that allow them to refinance to lower their rate even if their current mortgage balance is what the property is worth. These programs will be available until mid year next year 2010. For a potential new buyer the income tax credit has been extended to include repeat buyers in addition to first time buyers. The income tax credit of $6500.00 has been extended until April 2010. Interest rates are forecast to remain low for the next several months. An individual looking to purchase a home should find out what their ability to qualify is now so they can make an informed decision. Interest rates are a moving target and when the economy begins to turn around interest rates will rise.Judy BickellDecember 15, 2009 10:33AM
