We now have two days, yes, 2 days until the home buying tax credit is no longer available for first time buyers and move-up buyers. It’s been (and still is) a very fun opportunity to work with all those making a move to cash in on what seems to be one of very few tangible benefits (of the government stimulus package) for the American tax payer. Accepted contracts dated by 4/30 qualify (with an eligible buyer). Those still hanging around for final signature/dates after Friday will be out of luck.
Early this month we had A Lot of words flying around the real estate and mortgage industry indicating that the USDA Rural Housing funds would be dried up by the end of April. On April 20th we received an update regarding the remaining funds. Based on the memo there was still $1,546,902,245.82 available for purchase transactions. This year’s fiscal allocation started with $13.5 billion. The 11.45% remaining funds allocated for purchases give us a little room to breathe this month. Obviously those funds will dwindle rapidly as the tax credit contracts close escrow in the next two months, but it doesn’t fully rule out the possibility of making an offer on a home in the next week or two with the intentions of using the USDA program. However, please note that it will be very important to have a back up plan in the event that the well runs dry and we have no possibility of obtaining the USDA guarantee (your next best bet will be the FHA program).
I’m here as an advocate for you real estate financing. As a loan officer at Landmark Mortgage I have the ability to position you into the right program at the right time with the right rate. Please feel free to give me a call (503.585.1105) or shoot me an email with questions regarding your financing needs.