Time limit for $8,000 First time home buyer credit almost over.

Act Now To Get First Time Buyer Tax Credit

The $8,000 tax credit for first time buyers is working, drawing new people into the market and providing a big reason for growing home sales in metro Albuquerque. While the program ends November 30, as a practical matter, it ends in early September. That's because it typically takes from 45 to 60 days from signing a purchase agreement until a sale closes. You must close and fund on your new home by November 30 to quality for the tax credit.

The $8,000 tax credit is only for first-time home buyers. The law-the American Recovery and Reinvestment Act of 2009-defines "first-time home buyer" as someone who has not owned a principal residence during the three-year period before the purchase.

The tax credit is refundable. It could mean cash for you. If you pay less than $8,000in federal income taxes, the government will write you a check for the difference.

Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income is less than $75,000. For married couples filing a joint return, the income limit doubles to $150,000.

The tax credit especially appeals to people seeking more affordable homes. Inventories are low in this range. Homes are selling quicker and for higher prices. It's a sellers market for more affordable homes. If "more affordable" describes your home and you are considering selling, it is a good time to move up, to get that extra bedroom..

For higher priced homes, however, it's a buyers market. Inventories remain high for these homes. Plenty of choice exists and you can still get a good deal.

For first time buyers, the New Mexico Mortgage Finance Authority created the Tax Credit Loan Program to help with the down payment and closing costs. A first-time homebuyer can borrow 8% of the sales price or $6,500, whichever is less, and use the tax refund to repay the loan.

Give me a call. I will explain the tax credit program and find your new home.

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Americas 12th Largest Mortgage Lender Closes

Taylor Bean and Whitaker Americas 12th largest home loan company has closed it's doors after being suspended by federal agencies F.H.A. and H.U.D. An auditor for F.H.A said: "Irregular transactions that raised concerns of fraud."

This is sending shock waves through the mortgage lending industry. Taylor Bean and Whitaker represent 1.7% of the total loans made in the amount of $17 billion dollars so far just this year. This is also not good news for customers having to refinance or currently have a loan pending with Taylor Bean and will have to look somewhere else for financing.

Taylor Bean has traditionally followed guidlines set by Fannie Mae, Freddie Mac and F.H.A. which has allowed it to surrvive while other lenders have failed in the last few years like one well known here in Albuquerque; American Home Mortgage. Taylor Bean also used documents such as utility bills to prove credit worthiness of FHA borrowers with lower credit scores.

Some Analyists are predicting a rise in current interest rates as larger lenders like Bank of America and Citibank do not have to compete with lenders such as Taylor Bean.