Home Buyer Credit Gone…Now What?

Posted June 8th, 2010 by nateburt

Unfortunately it looks like the chances of a further extension to the home buyer tax credit are lessening by the day due to stronger housing data and new homes increased by 27% in March.  This is mostly impart of the tax credit.  Everyone rushed to get qualified for it.

While the home buyer credit is likely to expire, there are some exceptions for certain groups who can claim the credit into 2011.  The main group are members of the Armed Forces which include active military soldiers who want to use their VA entitlement loan and certain federal employees serving outside the US.  They have an extra year to but a primary residence in the US and still qualify for the home buyer credit.

If you don’t fall into the exception category, then is it still a good time to buy?  The answer is still YES.  Interest rates are still today at their lowest levels, which means lower monthly payments or buy a bigger home.  The other benefit to consider is home prices.  Even though in March of 2010 home prices increased by 4.3% – homes are at record low prices.  If we are on a Real Estate rebound then now is the perfect time.

The loan options for buying homes hasn’t gotten aggressive as 3 years ago.  In fact if you done have at least 10% you wont be buying a home (unless you go FHA).  The one loan that has stayed constant is the VA Guaranteed LOAN.  Its really the only loan left that does 100% financing with no monthly mortgage insurance premium.

So to Military personnel its great.  If you are active duty and serving out of the country you still have the tax credit and you have 100% financing.  This sounds like a no brainer to me.

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