Friday it started. I got an email from a lender informing us that their FHA rates had dropped to 6.00%, a drop of .50%. Yesterday more emails and phone calls as other lenders followed suit. That alone should get some buyers of the fence. Now add in the $7500 tax credit and if that doesn't get your buyer motivated then I would question whether you really have a buyer.
Is the tax credit a good deal? At first I wasn't sure but the more I think about it more I think it is. It's not the best thing Congress could have done, but it's what we have so let's make the most of it. Lets look at some of the features of this program.
1. You do get to take the $7500 credit when you file your 2008 taxes--That's a good thing.
2. It's for qualified first time home buyers--That's a good thing and you're a first time home buyer if you have not owned a home in the last 3 years.
3. Isn't it an interest free loan? Yes, but that's a good thing--you get the $7500 to use now and you have 15 years to pay it back interest free? I'd take a deal like that in a heartbeat.
4. What happens when I sell my home? When you sell, any outstanding balance has to be repaid, if there is sufficient profit--if their is not sufficient profit, THE REMAINING AMOUNT OF THE CREDIT IS FORGIVEN.
These are a few of the programs highlights. For more information check out this website-- www.federalhousingtaxcredit.comand click on frequently asked questions. Good luck.