IMPORTANT DATES AHEAD
Wednesday, March 10, 2010 -
Article by:
FHASUBMISSION.COM - ESSEX MORTGAGE BANK -
Tax Credit Expiration and Even More Important Dates for For First Time Home Buyers-
I have been getting more and more questions about the tax credit lately so I figured I would list some updated information for those looking to take advantage of the tax credit prior to its pending expiration.
As most of you know, all buyers must have a fully executed agreement of sale on a property by April 30, 2010 and close by June 30,2010 to be eligible for either of the tax credits. These dates are extremely important but there are a few other pending changes that are creating an even greater sense of urgency for people looking to buy homes right now.
Right now may be one of the shortest and most predictable windows of opportunity for those looking to buy soon. Here are the reasons:
1. The expiration of the tax credit. If someone is not under agreement by the end of April then they will not qualify. There are no signs pointing to an extension of the tax credit at this point.
2. The Fed will stop buying mortgage backed securities at the end of March. For those of you who have read my previous emails about this subject, you know that the Fed is the single largest investor in the Mortgage Backed Securities(MBS) that are used to set Mortgage rates. Once they pull out of that market at the end of March there is an expectation that we will see rates rise.
3. For borrowers looking to purchase a home using an FHA mortgage, the Department of Housing and Urban Development (HUD) are looking at ways to help financially support the program. This means that they will be raising the costs for FHA borrowers in a number of ways. The most imminent of these cost increases is set to go into effect on April 5, 2010 and will raise the Up-Front Mortgage Insurance Premium from the typical 1.75% to 2.25%. More changes are slated to follow (i.e. lowering the maximum allowable seller assist from 6% to 3% and increasing the monthly mortgage insurance premium) however, some of these will require congressional approval and/or hearings before being implemented.Please do yourself a favor and get pre-qualified today while this excellent opportunity is available at www.FHASUBMISSIONS.COM loan pre-qualification form can be submitted and a loan agent will contact you within the hour.
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