Annapolis, MD
Mortgage lenders facing increased regulation and revised paperwork required by the US Department of Housing and Urban Development (HUD) are advising potential home buyers that time is running short for the home buyer tax credits.
Qualified 1st time home buyers are eligible for a tax credit of up to $8,000 for a home that they are buying provided that they have entered into a binding contract on or before April 30, 2010. The buyer has until June 30, 2010 to complete the purchase or complete settlement on their purchase.
Qualified Repeat Home Buyers are eligible for a tax credit of up to $6,500 for a home that they are buying provided that they have entered into a binding contract on or before April 30, 2010. The buyer has until June 30, 2010 to complete the purchase or complete settlement on their purchase.
The new Truth in Lending Act (TILA), new Good Faith Estimate (GFE) and HUD-1 Settlement forms, Real Estate Settlement Procedures Act regulations and the Fannie Mae Home Valuation Code of Conduct (HVCC) governing the appraisal process, are all industry changes affecting the time necessary for the mortgage lender to process and approve a mortgage loan. The amount of time necessary to complete a “clean” mortgage loan has risen to approximately 60 days. Complications could extend the amount of time significantly and place a buyer’s chances of meeting the timelines for the credit in jeopardy.
Therefore many lenders are advising buyers to enter into a binding contract to purchase a home by April 01, 2010. Be aware that every day of delay beyond April 01, 2010 increases the chances of failing to meet the timelines of qualifying for the tax credit.
Countdown Clock for 1st-Time Home Buyer Credit – www.homebuyertaxcredit.com
Charles Kraus, GRI – Associate Broker
Coldwell Banker Residential Brokerage
Annapolis, MD
(O): (800) 456-1996
