More On the Tax Credit & USDA

Posted on April 29, 2010

Today and tomorrow we will be putting the finishing touches on a great, but very hectic month!  April marks the end of the First Time Home Buyer Tax Credit and was the original date that the USDA program was to run out of funds.  So it is safe to say there have been a ton of people trying to get their loans processed and beat these deadlines.  If you still want to take advantage of the tax credit you have today and tomorrow to get a home under contract (April 29th and 30th).  You then have until June 30th to close.  If you are hoping to close on a USDA loan you need to have your loan currently in underwriting and it must be rushed.  Funding is now projected to run out around May 7th.  If you are just getting started on a USDA loan, I suggest you at least have the ability to put 3.5% down on an FHA loan as a backup plan.  You will not have time to go from start to finish by May 7th.  With this being said, there is still hope.  A bill has been passed by the House that provides additional funding for the remainder of their Fiscal year and provides some flexibility with the funding fee so that the program can make up for any shortfalls in funding.  This still must be passed by the Senate, but if it does pass it will be great news!  USDA is an amazing program that has and will continue to help many in Rural America achieve the dream of home-ownership.  This program is vital to the continued recovery of the housing market.  Be sure to check back for updates.  More will follow if this bill is passed.

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