While tax day is here and passed for another year that doesn’t mean you can’t still get your Home Buyer Tax Credit. Some things that you may want to be aware of are that in order to qualify for the credit you must buy or have entered into a binding contract to buy a principal residence on or before April 30, 2010 (WHICH IS ONLY A FEW DAYS AWAY), and you must close on the home on or before June 30, 2010.

According to the IRS the following steps must be taken to claim the credit:

• File a Paper Return. You cannot e-file but must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase.

• Deadlines and Documents. In order to prove that you have met the date guidelines you will need to attach a copy of the pages from the signed binding contract that show all parties’ names and signatures, the purchase price, date of contract and the property address, and a properly executed copy of a settlement statement used to complete the purchase.

• Newly Constructed Homes. If you purchased a newly constructed home, where a settlement statement is not available, you must attach a copy of the certificate of occupancy showing the owners’ name(s), property address and date of the certificate.

• Mobile Home Purchases. If you purchased a mobile home and are unable to obtain a settlement statement, attach a copy of the executed retail sales contract. The contract should have all parties’ names and signature, date of purchase, property address and purchase price.

• Long-time Residents. For long-time resident homebuyers claiming the tax credit, the IRS recommends attaching documentation that covers the five-consecutive-year period. This may include documents such as Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner insurance records.

You can find more information about the Home Buyer Tax credit on the IRS website at http://www.IRS.gov/recovery.

As of February 1st, FHA suspended its rule prohibiting the insuring of a mortgage on a home owned by a seller for less than 90 days. The HUD Secretary Shaun Donovan said “This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed.”

In the press release put out by HUD, they state that in today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”

To read the entire article click here.

Here is an excerpt from the latest NAEBA press release that I found very insightful. Pay close attention to the statistics on appreciation and foreclosures.

Working with an EBA offers more than a dedicated representative. Data validates that buyers actually get better results. An EBA promises to work toward a better price and terms for buyers. A study conducted by Chandler & Chandler confirms that property purchased through an alliance with an EBA shows a 67% greater appreciation in value. Additionally, a survey conducted by the National Association of Exclusive Buyers Agents (NAEBA) found that among survey respondents, there were only 15 foreclosures out of 1,849 closings. That represents a foreclosure rate of just 0.8%, compared to the nationwide rate of 1.84% in 2008.

NAEBA views HUD’s advice to consider an exclusive buyer agent as very timely given current market conditions. Clark agrees, “We are encouraged by an increased movement among consumers to seek out Exclusive Buyer Agents. Working on behalf of buyers is extremely rewarding. Consumers who hire an Exclusive Buyer Agent find that the whole process is more enjoyable because of the incredible trust between the buyer and their agent that doesn’t always exist in the traditional buyer/agent relationship.”

To read more about NAEBA or this press release click here.