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Time is running out for $8000.00 Tax Credit

by Jeremy Larkin

It is September 1st at the writing of this piece. You can only put this off so long you know, and if you are considering purchasing your "first"* home and taking advantage of FREE money in the form of an $8000.00 tax credit, your time is short!

A quick definition of "first time buyer." You either: A - have never owned a home before, or B - have not owned a primary residence in the past 3 years.

What could you do with $8000.00?!?!? Many buyers are borrowing that amount from friends or family, then paying them back after closing. Others are putting it into the home for repairs and upgrades, and still others are just keeping it for a rainy day.

Logic Behind "Time Running Out"

To receive the $8000.00 tax credit you must have closed on your home purchase by no later than November 30th, 2009. Assuming that it takes 30-45 days to process and fund a home mortgage these days, (and it does), that puts you at October 30th at the LATEST to put a firm contract together on a place. October 15th is more like it.

Find a great real estate agent who understands this process in depth, and an even better mortgage person and get on it. NOW!

A FEW SHORT VIDEOS TO WATCH ABOUT THE TAX CREDIT - GREAT STUFF:

JEREMY LARKIN Discusses Tax Credit from St. George Blvd: HERE

Detailed view of the tax credit, who qualifies, how to get it:  HERE

Can Increased FHA Loan Limits Help Washington County Sellers?

by Jeremy Larkin

I've been away a few days and apologize for not getting this info up quicker.  This is fantastic news for residents of any county in the Nation, and specifically for Washington County buyers.  For a complete list of limits for all Utah counties, click here: https://entp.hud.gov/idapp/html/hicostlook.cfm

The FHA was established in 1934 to help borrowers, particularly those with low incomes, purchase homes by guaranteeing banks that those loans would be repaid should the borrower default. But the agency's loan limits have generally lagged behind those of Freddie Mac and Fannie Mae and as home prices climbed dramatically and lenders with looser underwriting standards proliferated the agency became less and less of a player in the mortgage market.

As a matter of fact, FHA insured loans have been mentioned as a possible escape hatch for borrowers who may be unable to make payments on their current adjustable rate mortgages when their interest rates reset over the next year, but that plan has its' challenges.

FHA financing is NOT the same as subprime financing.  It provides financing to borrowers with some credit issues and lower down payments, but it requires documentation of income and strives to prevent “payment shock” where a buyer jumps from a low rental payment to a high mortgage payment

This is good stuff, and in addition to the benefit of current mortgage rates (which I commented on HERE), this will allow many more buyers to realize the dream of home ownership in 2008. 

As a specialist in working with expired listings, I have been asked multiple times in recent weeks, "can this increase help sellers in Washington County?" The jury is still out. The real challenge lies in the fact that according to Lawrence Yun, chief Economist for NAR, as many of 80% of today's Buyers are also SELLERS trying to sell their current home before being able to buy. Ouch.

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Photo of Jeremy Larkin - The Larkin Group Real Estate
Jeremy Larkin - The Larkin Group
Keller Williams Realty
50 E 100 S, Suite 300
St. George UT 84770
435.767.9886
Fax: 435-359-5085

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