We finally have a government stimulus program that is working for the people. The home buyer tax credit has helped many Mount Pleasant residents make the leap from renter to very proud home owner over the last 9 months. It is one of the few government programs having an impact on the economy and is helping to slow if not stop the slumping Charleston area housing market. As a result of its success the government has agreed to continue the program through April 30, 2010. After which you are given until June 30, 2010 to complete the purchase transaction. If you are on the fence about buying now is the time to jump off. Make sure you do it fast as this train is about to leave the station for good.      

Remember the tax credit is not a tax write off. This is actual money back to you in the form of a check. You will receive a check for 10% of your purchase price up to $8,000. You can even apply for the credit right away by making an amendment to your 2008 taxes. It's easy and all you need to do is fill out a simple IRS form. I know that's an oxymoron however this IRS form is uncharacteristically easy. Or you can choose to file it with your 2009 taxes and offset any tax liability you have. If you don't owe anything, Uncle Sam will cut you a check for the full amount you qualify for.

Another great feature of the revised tax credit is the inclusion of existing home owners. It's no longer just for first time home buyers. It's also for those who have owned a primary residence for 5 out of the last 8 years and are looking to upgrade their home or even downsize in these tough times. These buyers can qualify for up to $6500.

As you are well aware, all good things come to an end and that is why Mount Pleasant residents need to act quickly, as time is running out. The home buyer tax credit will only last for another 4 months, that's it. If you don't take advantage of it now, you will miss out. There is an exception for active duty military that are stationed abroad. They will be given an additional 12 months to take advantage of the credit.
Mortgage rates have been so low for the last eight months is because the federal government has been subsidizing them to the tune of 1.25 Trillion dollars. This subsidy will end on March 30, 2009 and will likely send rates well above 6 %. On average a rate increase from current levels to 6.5% or higher will cost a Mount Pleasant home owner more than $103,000 in interest charges over the life of their loan. That's a lot of greenbacks. So the key is to take advantage of this great opportunity while it‘s still available.  
This is a time like no other for home affordability. There are still a great number of homes for sale in Mount Pleasant, and a good portion of those are Real Estate Owned (REO), otherwise known as foreclosed homes.  For a complete list of foreclosures in Mount Pleasant and surrounding areas, just email a request. Also to receive a detailed report of the Home Buyer Tax Credit Extension and a 2 page analysis of Mount Pleasant's housing market, email your request to eddie@eddieoneill.com or call 843-576-4639

Brought to you by:
Eddie O'Neill - a low country mortgage professional