Q: I heard that the $8,000 Buyer Tax Credit was extended. I am looking for a house now and could really use the incentive if I find a fixer-upper. How long do I have before it expires again?

A: The latest extension only benefits anyone who was already under agreement and was not able to make settlement by the previous deadline of June 30. Only the Federal Homebuyer Tax Credit’s closing deadline was extended to the end of September. Most homebuyers who weren’t already under contract by April 30 are out of luck unless a new tax credit is passed. continue reading »

Q: My friend is buying a house in Rhawnhurst next week. He is only putting $5,000 down, and is telling me that he is going to be paying less now he’s paying in rent. And then he’s getting $8,000 back in his taxes, so it’s like he’s getting paid to move. How is that possible? And can I do it too?

A: Owning a home sometimes can be cheaper than rent in some areas of the Northeast, so it’s quite possible, especially with the interest rates so low. It is one of the few legal tax shelters available. You can deduct interest payments, as well as property tax payments from your income tax. You can also deduct points paid for your home loan as well. continue reading »

Q: I am a first-time buyer, not in any rush, looking for a Northeast house, but my real estate agent seems to be in a rush to find me something. He is very nice and knows the area, but I feel like he maybe just wants
to make the sale. Do you think I should just find a new agent?

A: If you’ve signed a Business Relationship Agreement with him, then you need to ask him to let you out of the agreement. If not you can just go find another agent if you want. My question to you is why aren’t you in any rush? There are very real time sensitive, monitary-related reasons for homebuyers to want to purchase sooner rather than later: continue reading »

Q: My boyfriend and I are looking for a house together. I have good credit, but his credit score is bad. We are thinking about going to credit counseling before applying for a mortgage. How long do you think it will take to repair his credit? Do you think we will make the June tax credit deadline?

A: Most mortgage banks and brokers are looking for credit scores in the 600s, so how long it will take to repair your boyfriend’s credit really depends how low his credit scores are. It could take a couple months or a couple years, depending on the severity of the situation. continue reading »

Q: I am a first-time buyer and I am torn between two houses I would like to buy – one in Burholme and one in Holmesburg. They are the same price and I love them both so I don’t know how to decide. My agent says I only have about a week or two to decide which house I want if I want to make settlement in time to get the $8,000 First-time Buyer Federal Tax Credit. I am so torn, what should I do?

A: Don’t let a decision be made for you if someone else buys one, or both of these houses, before you choose. With the tax credit expiring Nov. 30, and while it may be urgent that you accelerate your decision making, you can still make your decision wisely. continue reading »