It has all come down to the wire! Congress voted to extend homebuyers tax credit and national flood insurance.
Homebuyer Tax Credit Bill HR 5623 – The closing date of the previous stated closing deadline by June 30, 2010 has been extended through September 30, 2010. This extension will help homebuyers who signed purchase contracts before April 30, 2010 and are waiting for the property owner’s lender for approval. According to the National Association of Realtors, it will benefit more than 14, 000 contracts in Florida.
Active Duty Military members exception - military families and active-duty servicemembers currently living overseas, deadline is April 30, 2011.
National Flood Insurance Program - Congress extended the bill HR5569 a short-term program retroactive to May 31,2010 until September 30, 2010.
It is signed, sealed and delivered – it is law! The First Time Home Buyers Tax Credit is extended and now current home owners wish to purchase a new Lakeland real estate may be elgible to receive a tax credit up to $6,500.
- First Time Homebuyers must be under contract no later than April 30, 2010 and close by June 30, 2010.
- Current eligible home owners buying a new primary residence may take advantage of this tax credit immediately
The chart below from the National Association of Realtors is an outline of the updated and expanded tax credit:
I’m sure you have some additional questions about the First Time Home Buyer Tax Credit and Existing Homeowner Tax Credit that I would like to share with you in this FAQ outline from the National Association of Realtors.
The April 30, 2010 deadline may look to you far away now, but with stricter lending guidelines and short sales flooding our Lakeland Real Estate market you don’t want to wait for this deadline to approach. There are still plenty of Lakeland homes for sale and the prices have been decreasing in recent years. Homes that are priced right will not stay on the market for a long time.
Check out what Lakeland Real Estate has in store for you with the click of the mouse right here below:
The State of Florida created a program allowing first-time homebuyers in Lakeland and every where else around this state to use their maximum allowable tax credit of up to $8000 toward a downpayment of their new home when buying Lakeland real estate. This program was effective July 1st; however the Florida Association of Realtors ® reports it may take until August 1st for this program to really kick off, due to funding mechanism.
Basically, it is a program of bridge loans, called the Florida Homebuyer Opportunity Program (FLHOP). It is used to help first-time homebuyers to receive their funds early for downpayment. Although most first-time homebuyers qualify for a tax credit, they once had to wait until they submitted the info to the IRS through their tax return to receive a check that could take up to 8 weeks. Now a first-time homebuyer can borrow up to $8000 from the State of Florida and then pay it back after receiving the tax credit within 18 months without interest and penalties. The caveat here, there are additional loan documents that would address potential problems that may create confusion for the first-time homebuyer.
The Federal Housing Administration (FHA) has its own program similar that applies only to FHA loans and buyers still must have a minimum downpayment of 3.5% when going through private lenders. When a borrower uses up to $8000 tax credit through state or local government program, they may use it to make up the 3.5% downpayment.
Florida local housing administrators will oversee the downpayment funds locally and while this program is similar to the SHIP program (State Housing Initiatives Partnership) the difference is SHIP uses area median income (AMI), which are generally lower than the federal tax limit.
Whether you the first-time homebuyer need immediate assistance to receive this bridge-loan or can wait until you receive your tax credit check, there is still time left to look for your Lakeland real estate and take advantage to receive up to $8000. I’m sure you could use it, I know I could if I would qualify for a first-time homebuyer.
Please be advised for additional questions about the $8000 tax credit consult your tax professional.
Only 7 Months left…..Time is running Out for Lakeland, Florida First-time Homebuyers to receive $8000 tax credit.
Folks, you may think “oh, I’ve got plenty of time”…. 7 months is not too far off, it will be here before you know it. By now, I’m sure, everyone knows about the $8000 tax credit for first-time homebuyers – just in case you might have missed this important news. Here is a little recap to qualify, home buyers must not have owned a home for the past three years and have a modified adjusted gross income (MAGI) that is less than $95,000 for single filers and $170,000 for a joint tax return.
Thinking that a sales contract that is signed, sealed and delivered by November 30th is sufficient, you may be surprised to know that it is not good enough to get the $8000 tax credit – you must close by November 30, 2009 to receive this credit.
If you are still sitting over the fence for the prices to drop and wait until a few weeks before the November 30th deadline to buy your Lakeland home, you may encounter problems with title companies and other parties involved in the transaction. Generally, a transaction from contract to close may only take a few weeks for a resale on an existing home. For a new construction the time frame from start to finish could take up to six month depending on floor plan, size, and location.
I suspect there will be a blitz of first-time Lakeland home buyers who are waiting until the last minute and that is when title companies, home inspectors, appraisers, not to mention lenders and underwriters could get swamped with files during November – don’t wait until it’s too late!
The IRS will only allow actual closing dates and does not allow “planned closing date”.
Interested in a home here in Lakeland, Florida? Begin your Lakeland home search today! Click on the “Search for Homes” icon below to see what Lakeland real estate options are in store for you!
The Internal Revenue Service announced today that an expanded tax break is available for eligible First-Time Homebuyers. You don’t have to wait until next year to receive your $8,000 tax credit and the best news of it all you don’t have to pay it back, according to IRS Commissioner Doug Shulman.
Lakeland Florida has an abundance of homes available for sale with home prices falling back to 2004 level. Low interest rates and great available mortgage programs such as VA, FHA and USDA you don’t want to miss out on this great opportunity to own your first home.
Check out this reference chart in one of my earlier blog post here
The $789 Billion stimulus package was unveiled signed, sealed and delivered to the American people.
First-Time Homebuyers listen up! It is now the best time to buy homes in Lakeland, Bartow, Winter Haven, and all the surrounding cities in Polk County, Florida.
- Prices for Homes in Lakeland, Florida and throughout Polk County have dropped to 2004 level.
- Interest rates are at an all time low, lingering around 5%
- Housing Inventory have reached it’s highest level
- Now, you can deduct $8,000 when buying your first Lakeland home.
Click here to search Lakeland area homes
Check out this reference chart! There was some confusion about the tax credit with the $15,000 credit being axed by the plan and the new $8,000 tax credit compared to the $7,500.
