Update on $8,000 Tax Credit Extension – Helps When Get FHA Loan To Buy In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
Whether you get FHA loan or conventional loan to buy a home in California, you may have had your purchase contract signed before April 30th and you are in a race to get your home purchase closed by June 30th to make the deadline to collect the $8,000 home buyer tax credit or the $6,500 move up home buyer tax credit. Well there is good news for you because it looks like the U.S. Senate is going to extend the deadline to close to September 30th 2010.
The June 30 closing deadline has not been extended yet…but it was accepted as an amendment to the Tax Extenders Bill. Under the amendment, borrowers who signed purchase contracts by April 30 would be given three extra months to close their loan and still qualify for the homebuyer tax credit. The new deadline would be September 30, 2010.
In a budget “point of order” vote taken this morning, the Senate actually voted against the bill that contains the homebuyer tax credit extension amendment. This forces the Senate Finance Committee, chaired by Senator Max Baucus, to rework the overall proposal before another vote is taken.
While this may be a cause of concern for borrowers who are awaiting a clear to close on their loan file, the “unanimous consent agreement” that set up the vote yesterday morning says that any amendments accepted into the Senate Finance committee’s version of the legislation would stand as long as the reworked bill is eventually approved by the Senate. Thus, the homebuyer tax credit closing deadline extension proposed by Senate Majority Leader Harry Reid would stand if the Senate agrees on the reworked version of the proposal. This only applies to the Senate. The House would still need to reconcile.
This is great for those who may be having their FHA loan approval taking extra long or are in contract to buy a short sale and it is taking extra long for the short sale approval. The way it looks you should have until September 30th to close.
Here are some reminders about some of the benefits of buying you home with FHA loan in California or a conventional loan:
- FHA loan credit score does not have to be perfect, a 620 score can get you excellent FHA loan interest rates in California
- Maximum FHA loan in California is $729,750. Many counties and cities in California such as San Diego, Los Angeles, Orange, San Jose, and San Francisco allow you to go all the way up to $729,750 with just 3.5% FHA down payment
- FHA loan vs conventional loan…FHA requires only 3.5% down payment, allows lower credit scores and higher debt-to-income ratios. Conventional can be had with 5% down, no up front mortgage insurance but had much higher credit score and debt-to-income ratio standards
- FHA loan down payment minimum is only 3.5% and can be a gift from a relative
- FHA loan interest rates are STILL close to record historical lows!
- Conventional loan offer the Fannie Mae Homepath loan with as little as 3% down and no appraisal needed, see my earlier article about Homepath (http://www.socalfhahomeloans.com/fannie-mae-homepath-loans-an-excellent-alternative-to-getting-fha-loan-california/)
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a FHA, VA or conventional Loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
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