Sacramento Home Buyer Update

Greetings my favorite Sacramento real estate interested friends!

Today’s blog is a hodge-podge of things you need to know if you’re thinking of buying a home in Sacramento…or as we fondly call it, “Sack-o-tomatoes”

FIRST:  The $8,000 Tax Credit has been extended til June. This means you have to be IN CONTRACT by April 30, 2010 and your escrow on your new Sacramento home must close by June 30, 2010. A new add-on to this is that now repeat Sacramento home-buyers (you must have lived in the home you own now for three consecutive years), can earn a tax credit of up to $6,500. Good Stuff!

SECOND: Because of some sneaky-Petes out there, folks who go around claiming the tax credit without actually having the home to go with it–the IRS is now requiring a special form be filled out which will require driver’s license and proof of homeownership, among other things. While the form is easily accessible and your agent will give it to you (assuming your agent is me the pain thing that may cramp your style with this new form is that you filers will not be able to use e-filing, but hey, you’ll be groven in your new digs, so who cares?

THIRD: Coming to this summer to lenders near you: FHA is going to up the ante. While they’re not taking away the 3.5% down (thanks goodness!), they are putting some tighter reins in place. After June 1, 2010, IF your FICO score sinks below 580, you’re looking at a 10% down. That can really empty your piggy-bank. Not to mention that if you can afford to put 10% down, we might even be able to find you a conventional loan (which sellers tend to like better becuase the appraisers are easier). Additionally, the upfront mortgage insurance is said to be increasing from 1.75 to 2.25. OUCH. That new Sacramento home is gonna be worth it, but hey, let’s save some money where we can!

FOURTH: All that said, NOW is the time to buy. Money is cheap, inventory is moving fast and prices are as low as they’re going to go. If I can answser any questions for you, just give me a call! 916.482.5834.

Also, please tune into my weekly real estate radio & other stuff show, Sacramento Smiles every Wednesday morning at www.InLoveWithSacto.

ta ta for now!
Tamara