One reason to buy now.

One reason to buy now.

A factor to consider is that FHA is tightening their guidelines. FHA is a loan program that has become increasingly popular over the last year. Buyers only need a 3.5% down payment and minimum 620 credit score. The Up Front mortgage insurance that is required is currently 1.75% of the loan amount, but will be increasing to 2.25% of the loan amount on April 5th. That’s a significant difference when looking at a mortgage! Along with the home buyers credits now is the time to make your move to home ownership.

$8000 First Time Home Buyers Credit

$8,000 First-time Home Buyer Tax Credit at a Glance
• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.