Tax Credits, Loan Amounts and Now Mortgage Rates!
Monday, March 16th, 2009
***Update – 2010 California New Home Tax Credit Takes Effect 5/1/10 – Details Here***
Your Stimulus!
The California $10,000 Tax Credit for the purchase of a new home has made a lot of news lately.
The increase in conforming loan rates by Fannie Mae, Freddie Mac, FHA and VA have also brought home buyers back into the sales offices.
Now, we see the impact of falling interest rates. Chief Economist, Frank Nothaft from Freddie Mac announced that the 30 year fixed rate mortgage averaged 5.03% during this past week. This is good news!
That means for a home priced at $400,000, with good credit and a 3.5% down payment (loan amount = $386,000), your loan payment would be less than $2,100 per month (P&I only). This is for an FHA loan. For a VA loan (no down payment) you payment would be around $2,150 per month (P&I only).
If you buy a new home in California, you would be eligible for a $10,000 State Tax Credit. If your family income is less than $150,000 and you have not owned a home in the last 3 years, you may also be eligible for an $8,000 Federal Tax Credit. If you want to buy a home where your loan amount would be over $417,500, but less than $697,500 (in San Diego County), your rate would go up to 5.25%.
But, timing is important! According to the Franchise Tax Board, $6,987,515 of State Tax Credit has been applied for by 711 new home buyers, through March 11, 2009
With home prices back at 2002 levels (or lower), historically low mortgage interest rates, higher conforming loan amounts and up to $18,000 in tax credits, can you think of a better time to buy a new home? Many people are taking advantage of these “Buyer Friendly” market factors. And, many builders are reporting increased sales so far this year. Is this the right time for you? Stop by a Brookfield Homes sales office and let our professional sales counselors walk you through the decision making process. They will help you find the home of your dreams!
