I'll be a "first time home buyer" again in October 2009 (3 years since I sold my last home and I have been rent since. Because of this, I will quality for the $8,000 tax credit then. Obviously, I don't want to close on a house until October, but I would like to make sure I'm not crunched for time when its time to buy.
I would keep a very close eye on the interest rates. Remember, the tax credit is an "up to" amount and not an automatic $8,000. Look at your income and get tax advice help in determining exactly what your credit might be. Low rates right now may not be offset by any credit come October. If you plan on living in the home you purchase for several years, any tax credit could be wiped out by an increase in rates come fall. Think long term!
I have had a similar situation. Don't know if this would work for you. The potential buyer signed an actual purchase agreement to close later in the year. it was an actual contract with a "long closing" he moved into the house under an "early occupancy agreement" and paid so much a month which was not considered rent(no lease) but a monthly fee for moving in ahead of closing.
Sellers were happy because they had an actual purchase agreement. Buyer was happy because he got to get into the house right away. You might ask your agent to look into something like this.
Hello Ricardo,
It happens all the time. Especially with the current market the seller is going to work with you. Be sure to work out all terms in advance because as the market changes the sellers attitude towards the sale is going to change as well. In California they call it a lease purchase contract, but I'm sure they have the same thing in your area as well. Good luck!
Make it a great day,
Josh Hambarian
Steele Realty
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