FHA Loans: Home Buyer Tax Credit Expires in 6 Weeks! (VIDEO)
By: Bruno Mckenzie
Mar. 17, 2010 (FreeRateUpdate.com) – The IRS home-buyer tax credit of up to $8,000 expires in just 6 weeks. Before the tax credit was extended late last year, we saw a significant increase in home sales. It’s up in the air as to whether we’ll see an increase in purchases as the deadline looms once again.
Investors, who do not plan on occupying a property (usually pay cash anyways), are not eligible for the tax credit. It’s estimated 40-45% off home buyers are investors.
For those financing the purchase of a home with an FHA loan, the tax credit is applicable toward closing costs. That’s a big help because FHA loans are significantly more expensive due to MI and other FHA fees. New FHA guidelines include the boost of MI to 2.25 on April, 05. The tax credit is acknowledged for boosting home sales tremendously and having a positive effect on FHA loan demand.
Looking for the lowest FHA mortgage rates? Search local mortgage rates here.
Here’s a video about the home-buyer tax credit deadline looming. Click to play.