The $8,000 “first-time homebuyer” tax credit expires after November 30th. I put that in quotes because it isn’t really a “first-time” home buyer credit; the rule is that to purchase a home and take advantage of the credit you cannot have owned a home in the past three years. There has been a lot of confusion over that point and unfortunately many people who qualify for the tax credit don’t realize it, and will end up losing the opprotunity to save thousands on their home purchase.
So, you’re ready to buy your “first” home in St. Petersburg, and you want to take advantage of the home buyer tax credit, but you don’t know where to start. First you need a real estate agent to help you locate the best property and get you the best deal. As we move into October you still have about 60 days to locate a property, get it under contract and get it to closing. A real estate transaction typically takes 30-45 days from contract to close, so we have plenty of time. But don’t delay any longer - we need to get the ball rolling, so contact usimmediately if you’re ready to find that perfect St. Petersburg home.
There is a big push by Realtors, bankers, and some lawmakers to get Congress to extend the credit for six months to one year, but as of now it is set to expire November 30th.
Did you know that you may be able to get the $8,000 up front, rather than waiting for a tax refund? The Federal Housing Administration (FHA) permits its lenders to provide a short-term bridge loan to qualified homebuyers. While the $8,000 cannot be used to cover the minimum FHA down-payment of 3,5%, you can use it for closing costs or to buy down your interest rate.
Florida also has its own program, The Florida Homebuyer Opportunity Program (FL HOP), which may allow you to access the funds up front and use the money toward the transaction in any way you choose. If you would like more information on either of these programs just let us know and we will get you in touch qualified lenders who can help you with the tax credit and pre-qualification for financing.
