Tax Credit Deadline

The time to take advantage of this program for what we know today is short. To qualify for the credit you must close before 12/1 and considering 11/30 is the Monday after a Holiday Thanksgiving, coupled with the new Truth in Lending disclosure requirements, I’m advising customers to try to close by 11/16. I’d hate to feel the repercussions of not meeting the 11/30 closing date and the buyer not being able to collect the $8,000.00. Best practice is better safe than sorry. With this said, 11/16 is fast approaching. Buyers need to know this if they plan on taking advantage of it. Two misconceptions about this credit are: You do not have to be a first time homebuyer, you just cannot have owned a property in the last 3 years. And, you can make more than the income limits of $75,000 individual and $150,000/jointly, the credit is just less than a full $8,000. Call me for more details.

Add to this that the state of Texas currently has $4.2 million available for down payment assistance loans. I would anticipate a rush for these funds as the credit deadline nears. They are on a first come first serve basis and cannot be reserved until a contract is executed and appraisal completed. (Call me about the details on this program. It’s really easy and not complicated like a bond program.) Borrower can get an advance in the amount of 5% of the sales price or $7,000 which ever is less.