GREAT NEWS FOR ST. TAMMANY PARISH HOMEBUYERS:

1st Time Home-Buyer Tax Credit Can Be Used on Closing Costs

Covington Homes under $200K   

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Mandeville Homes $200K

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The U.S. Department of Housing & Urban Development announced it will allow FHA-approved lenders to develop "bridge-loan" products for first-time home buyers. To qualify, a buyer must not have owned a home in the last three years. 

This tax benefit has evolved over the past year to its most generous use yet: effectively allowing buyers to use the federal tax credit up front, rather than waiting until tax time.

The programs developed by FHA-approved lenders will allow first-time home-buyers to use the benefit in different ways, including: 

• help with closing costs,
• buying down an interest rate, or
• to put more more than the FHA minimum 3.5% down.

All of the these options will save buyers money and possibly strengthen their offers, depending on market conditions at the time. Activity across St. Tammany has picked up - even leading to multiple offers in some situations.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender may be able to get a bridge loan to bring down the up-front costs of buying a home significantly.  

The FHA will still require the purchase to come up with the minimum 3.5 percent down payment.

The tax credit does not have to be repaid, and is fully reimbursable. These developments plus historically low prices and still low mortgage rates, make this an opportune time to buy in St. Tammany Parish. There are great values right now across Mandeville, Covington, Madisonville, and Abita Springs for first-time homebuyers.

Call us for a free consultation to discuss your specific opportunities and situation: 985-373-9019.

PS - Keep in mind the tax credit will expire December 1st, 2009, so now is the time to take act!