Homeowners or potential homeowners should act quickly if they want to take advantage of some of the federal governments programs aimed at keeping people in existing homes or getting potential home buyers into a new home.
The Home Affordable Refinancing Program’s goal is to help keep homeowners in their homes and the home buyer tax credit was initiated to get prospective buyers into a new house. While both of these programs are set to expire in the spring of 2010, they could be extended or expanded, much like the recent extension and expansion of the home buyer tax credit.
Here is some information on how the programs currently stand and how much time you have to take advantage of them according to their current expiration dates.
The Home Affordable Refinancing Program is part of the Making Home Affordable Program. The HARP is set to end in June of 2010. The program makes it possible for homeowners that possess little or no equity in their home to refinance their mortgage loans. This is only possible if their mortgages are backed by Fannie Mae and Freddi Mac. This program was designed for homeowners who are underwater, meaning that they owe more on their mortgage than their home is worth.
Homeowners who qualify for the Home Affordable Refinancing Program are being encouraged to take advantage of the program because it might be the only chance they will have to refinance their home mortgage.
Potential home buyers have less than five months to take advantage of the recently expanded tax credit offered by the federal government. To take advantage of the tax credit, buyers must have a contract to purchase their home by April and the closing on the home must be done by June 2010. The program for first-time home buyers was set to expire November 30, 2009, but was extend and expanded to include a tax credit for move-up home buyers.
First-time home buyers are eligible for a tax credit worth 10% of the purchase price of the home up to $8,000. A first-time home buyer is defined as someone who has not owned a home in the last 3-years. Existing homeowners are eligible for a tax credit worth 10% of the purchase price of the home up to $6,500. An existing homeowner is defined as homeowners who have owned a home for the last 5 consecutive years and the home they intend to purchase must be used as their primary residence.
For more information on the home buyer tax credit, read this press release from the Internal Revenue Service, or visit the National Association of Home Builder’s www.federalhousingtaxcredit.com.
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