In before the bell: 2 months until Homebuyer Tax Credit ends

[Anonymous]

I've just gotten my credit to where I can get a decent loan on a condo in the Metro Detroit area. I was going to rent for the longest, but the market is really weak where I'm at (surprise, surprise) and I can get a decent two bedroom place for $30-35K. I'm in way over my head though, as I'm starting from Step 1 and wanted to close before the tax credit goes away. I am a bit worried about my job status as a layoff is in the works, although when is beyond me.

I guess in a nutshell, I'm mulling exactly what to do here; either take the plunge, or end up renting for a year and setting back my working capital to buy in the future. Any help would be greatly appreciated.

[cobaltnv]

keep in mind that the tax credit is for $8000 or 10% of the purchase price whichever is less. So with a 30-35k home you would be looking at a $3-3.5k credit. Only you can decide when is right to purchase. If a layoff is eminent you may wish to wait, but without knowing you financial situation it is hard to offer you any advice worth anything.

My gut feeling is that house prices are not going up anytime soon.

Good luck.

[Anonymous]

You may have another issue as well.  When lenders do VOE (verification of employment) it asks for monthyl income usually, but also usually asks for expected earnings in the next year.  If there is a eminent layoff they may not be willing to give expected income amounts.  I know on our VOE's' theyt required the expected income amount for the next year as a kind of non-guaranteed commitment that the person was still going to be employed for the next year.  IT may or may not come up.  Unfortunately if it does, it may be at final VOE right when you thin you are about to close.