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Home Buying Mortgages + Lending

Gov’t Incentives will Expire Soon, so buy Now!

The government wants you to buy real estate. As a result, two programs are available to significantly reduce your acquisition costs. So in addition to the low prices, there 2 additional reasons to buy in the Phoenix area right now! But these opportunities expire soon, so you shouldn’t put off any planned investment in Phoenix area real estate.

The programs’ qualification requirements, dates and deadlines are different, so do your research and get the necessary help in order to be sure you qualify.

First is Fannie Mae’s new closing cost assistance program on purchases of their foreclosed upon houses. The reason for the program is said to be to stabilize communities and assist home buyers. I think the real reason is that they have too much foreclosed upon inventory. So this is like a sale, and we all love sales, right?

What Fannie Mae is offering is a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties that close within this period may receive up to 3.5% of the final sales price for closing costs, the purchase of new Whirlpool® appliances (by Fannie Mae on the buyers behalf), or a mix of thereof at the buyer’s discretion, up to the maximum 3.5%.

To be eligible for this incentive the closing must occur before May 1, 2010, and Buyers must be owner-occupants (investors are excluded).

And don’t forget the additional “incentive” supplied by the tax credit. There is no requirement that existing homeowners sell their existing home to be eligible tax credit, so it applies to second or investment homes. For existing homeowners, the amount is $6,500 (“new” buyers get $8,000); but the homeowner must have lived in the home for 5 consecutive years out of the last 8. To qualify for the tax credit, the buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010.

You should get professional tax help if you plan to take advantage of the tax credit, because there are various eligibility requirements. For example, it is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can’t exceed $800,000. Both of those limits need further investigation due to the possibility of different definitions of them, such as whether the limits are net or gross. You can read the eligibility instructions given by the IRS for the tax refund/credit form (number 5405) at http://www.irs.gov/pub/irs-pdf/i5405.pdf.

So here are two more reasons to do something now, because both programs expire either in May or June of 2010. And we can help you to get the property you want, so call 480 675-0112 or visit us at www.simplysoldaz.com.

– N. Mark Kramoltz © 2015

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