I believe they are accepting up to 28000 applications before they cut it off. There is no way to verify, Yet, how much credit has been allocated. There are going to be many duplicate, fraudulent cases that allow real property buyers the credit. So don’t stop now, get it in. They won’t add another 100 million, but the quicker you get in the better your chances are for those that don’t get the credit, who don’t qualify or who falsified their documents.

Good luck to you.

Jonas

Do you think this will be extended again? Maybe they’ll add another 100 million to it?

First off, I apologize for the late reply to your questions. Refinancing has never been better – rates are at the lowest we’ve ever seen. I think the rates are hitting their low point. There is strong resistance in the Mortgage Backed Securities market to see rates lower, however, all of us have been proven wrong at one time or another.

Within 2 months of purchasing a home doing a refinance could have some drawbacks but not necessarily for you – your loan officer from the purchase transaction may need to reimburse the lender for any commissions made if you pay off your loan within 4-6 months of purchase. That may not happen, it all depends on their situation.

Closing costs are an issue if they are unable to be wrapped into the loan amount. Typically with a refinance that close to when you purchased, the lender will only allow the value of the home at purchase, meaning a new appraisal would not be able to help you. A 6-12 month period is typical before you can use new appraised value on a refinance. Say the appraisal came in higher, you could use the higher value to increase your loan amount slightly to cover the closing costs. With this being only 2 months from purchase, the majority of lenders are going to keep the same value at purchase which could cause the closing costs to be an out of pocket expense.

One more thing – under some circumstances we are able to provide a significant credit toward closing costs depending on the rate you choose. This may help to offset those costs and make refinancing a worthwhile cause. I wouldn’t know until we looked at your situation a little deeper.

Give me a ring if you’d like or email me some details – 951-506-4663 or jonas@jonasloans.com

Take care,

Jonas

what is your opinion on refinancing at this time? Do you think the rates are headed down based on how the economy is looking? Are there any restrictions or drawbacks in refinancing within 2 months of purchasing a home? I think closing costs is a factor but is there anything else to consider?

Thanks,
Sri

I am not a tax expert but here is what I understand. You can file an amended federal return for year 2009 (assuming the contract was signed prior to april 30th) to get your $8000. For state, you have to wait until your 2010 tax return.

Sri

According to the FTB website, your application will be denied if it is not received within 2 weeks after close of escrow. You can try calling FTB and see if they can help you in this case.

http://www.ftb.ca.gov/individuals/New_Home_Credit_FAQs.shtml#q21 (FAQ 21)

Regards.

You Rock! Thank you for taking the time to consult with the FTB. It all depends on who you get on the other end of the line when you call there. Many of them are just as in the dark as we are.

Thanks again!

Jonas

I got hold of them just now, and they confirmed that if the spouse is not on the loan or title, we dont have to include the spouse information in buyer block 1… just the buyer name.

David – i guess that answers one of your questions.