One important offer for homebuyers to not forget about is the First-Time Homebuyer Tax Credit. The extension for this special offer to first-time homebuyers was approved which means that homebuyers can still take advantage of this program through April 30, 2010 (they must enter into a biding contract to buy by this date). There is also a 60-day period after this date in order for any closing costs to be completed…so they must close by June 30, 2010.
The major benefit of this program is still obviously the $8,000 tax credit for first-time homebuyers, but, this program now also includes a $6500 tax credit for those who are currently homeowners (and have live in their home for a minimum of five years) but are looking to purchase a new main home, and it has also increased the income limits for couples and individuals. Taxpayers have the option of claiming this credit on either their 2009 or 2010 returns, but the credit may not be claimed before the closing date.
In order for a first-time homebuyer to claim the tax credit, they must attach Form 5405 along with a copy of Form HUD-1 or Settlement Statement (for conventional homes), a copy of the executed retail sales contract (for mobile homes), or a copy of the certificate of occupancy (for newly constructed homes). In order for the long-time residents to claim the $6500 tax credit, they must provide the previously stated paperwork along with a Form 1098, Mortgage Interest Statement, Property Tax Records, or Homeowner’s Insurance Records.
In addition to these special tax credit offers; Fannie Mae is now offering a new incentive for homebuyers to purchase a Fannie Mae-owned home. If a buyer’s offer is accepted after January 28, 2010 and the property sales close before May 1, 2010, the buyer can receive up to 3.5% for some of the final sale prices. This includes up to 3.5% on closing costs, the purchase of new Whirlpool appliances by Fannie Mae, or a mix of closing costs and appliances (but still up to only 3.5%). The buyers must be occupants of the property to receive this deal.
Fannie Mae also offers a ‘First Look for Fannie Mae homes’. This means that for the first 15 days that a Fannie Mae property is listed in the local MLS (multiple listings service), Fannie Mae is only providing the “first look” at the homes to owner occupants and buyers using public funds. If the home is still up for sale after the 15th day, then investor offers on the home will be considered.