If you, or someone you know, is thinking of buying a first home in Columbus or Central Ohio in the next year, there’s no better time than right now. Not only can you take advantage of historically-low interest rates and still very affordable house prices, the $8,000 federal government tax credit is still available. But you have to hurry! In order to qualify, you must buy on or before April 30, 2010 (or have a binding sales contract signed by then, with purchase complete by June 30, 2010).

Here’s how it works:

• There’s an income limit of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
• The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
• Any home used as a principal residence qualifies for the credit, including single-family detached homes, townhouses and condominiums, manufactured homes and houseboats.
• Maximum purchase price is $800,000.
• You claim the tax credit on your federal income tax return. No other applications are required, and no pre-approval is necessary, as long as you meet the conditions mentioned above.

Don’t miss out on this important homeownership incentive! Buying before April 30^th means getting an extremely affordable interest rate, discounted house price AND an $8,000 tax credit. This may be your last opportunity to become a homeowner while it’s still within reach.

As your mortgage advisor, I’d be happy to sit down with you, explain all the details of the tax credit, analyze your needs and present you with an affordable plan for purchasing your first home loan in Columbus or Central Ohio.  Please talk to me well before April 30^th, so you have time to find the property of your dreams!

Central Ohio Home Loan:  Changes to FHA

Borrowers looking for a FHA home loan in Columbus or Central Ohio should be aware of the upcoming policy changes at FHA.  The changes were deemed necessary to reduce the portfolio’s risk and for FHA to remain solvent.

The 3 major changes are:

1. Upfront mortgage insurance premium is increasing from 1.75% to 2.25%
2. Sellers concessions will be maxed out at 3% down from the current 6%
3. Minimum down payment will be 10% for applicants with a sub 580 FICO

These new guidelines will not go into effect until the spring.  In my opinion the changes though costly will not hamper lending very much.  Most lenders have self imposed a 620 credit score guideline on FHA lending.  The changes will make FHA loans more costly buy hopefully it will ensure FHA lending will be with us for years to come.

If you have any questions regarding any FHA or conventional home loan in Columbus or Central Ohio please contact me and I would be glad to help.