Don't let Thanksgiving rob you of your $8,000 tax credit!
When the housing crisis became an epidemic, the administration, the Feds and Congress enacted several stimulus programs that were meant as temporary, to stimulate the housing market.
Many of the programs that are mortgage related, for both home buyers and those who are refinancing existing loans, are ending soon, unless the government extends these programs.
The three most important programs that could affect you include:
1st time home buyer tax credit - Your loan MUST close (fund and be recorded) by midnight on November 30, 2009. If you live in an Escrow state (see the link below to see if you do), you must sign your loan documents on or before November 25th in order for your loan to close by November 30. Do not count on this program being extended. It may not be, and that could cost you $8,000!
In an escrow state, your loan documents are signed at a title company or other location. The paperwork must be returned to the lender and checked before the loan is approved to close.
November 30 is the Monday following the Thanksgiving holiday, so there are a lot of lost days between November 25 and November 30th. Someone wasn't thinking very clearly when that date was chosen, but we have to live with it now. Don't let Thanksgiving rob you of your $8000 check. Get on your lender now to make sure you don't miss out.
High balance FHA loans - This program is set to expire on December 31st. If you are a home buyer, you must sign before that date to ensure your loan closes on time, if you live in an escrow state. If you are refinancing an existing mortgage, you must allow time for the mandatory 3 day right of rescission, so you must sign before December 28th.
High balance FHA loans are those that are for loan amounts above the "normal" FHA loan limits. Again, see the link below to determine the loan limits for your area.
High balance conforming loans - Conforming loan limits are $417,000 in every state. These limits apply to anyone getting a conventional or conforming loan that adheres to Fannie Mae or Freddie Mac underwriting guidelines. If your loan amount is for more than $417,000, odds are you are doing a High balance conforming loan. This program is also set to expire and must close on or before December 31, 2009.
For the high balance FHA and conforming loans, you are getting much better rates under this government program than you would get if your loan does not close on time. The same signing deadlines apply to this loan as apply to the High balance FHA loan.
If you are unsure of the date you must sign loan papers to be assured you will close on time, the time to contact your lender is NOW!
I know this sounds very much like a scare tactic, but extension of all these programs is very controversial. If you don't close on time, it could be, at the least, very expensive for you. At the worst, in the case of the high balance programs, the higher rate could disqualify you for the loan.
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