It's that time of the year once again. Time to decide if you will put that home purchase you've been planning off until after the holidays, or try to close escrow on a home before the end of the year. This year there are a few things to consider that may push you to take action now.
- The Jumbo FHA limits are going away. The good news for many Orange County home buyers is that the new FHA limit will still be fairly high at $625,500, but the temporary limit of $729,750 is about to expire. Any buyer who is shopping in a price range between $660,000 to $800,000, and was planning to put either a minimum down payment of 3.5%, or even between 5% and 10% down, needs to act quickly if they are to take advantage of the temporary limits. Many lenders have already cut off the temporary limits, but Frost Mortgage is still closing them, and will be through the end of December. Actually, even into the beginning of January. But we need to get the approval soon, Once the temporary FHA limits are gone, buyers will have limited options for a loan unless they have 20% for down payment.
- $7,500 tax credit for First Time Buyers. This tax credit will is available for homes purchased all the way to July 1, 2009. But that means you won't actually receive the credit until you file your 2009 Federal Tax returns in 2010. If escrow is closed by December 31, 2008, you could be getting that tax credit when you file your taxes at the beginning of 2008. Why wait a year when you can take advantage now.
I actually have a client right now who is making an offer on a home valued at $750,000 and will be coming in with 3.5% down. Hopefully his offer will get accepted so he can beat the clock. Homes in Irvine, Tustin, Orange, and even Newport Beach can still benefit from these high temporary limits. It's time to get serious. If you are interested in finding out more information, or need to get prequalified, please contact Tim Storm with Home Point Financial at 949-829-1846.