April 30, 2010 is the current deadline for the home buyer’s tax credit. Many experts believe the tax credit will not be extended. I know with my current buyers the hope to have a signed purchase agreement by April 30is high, but with the low inventory of traditional sales, the inability for banks to move forward on short sales in a timely manner, poor condition of many affordable homes and many foreclosures that are not good deals they feel defeated. The one gleaming star is that my buyers realize that many homes have been bought and sold without a tax credit.

There is no argument that the the tax credit is an outstanding benefit to buying a home before April 30th, but what is being missed is the incredibly low interest rates. The tax credit is a one time hit, but 5% interest rates even 6-6.5% interest rates are allowing todays buyer to have more buying power. They are allowing many first time home buyers to get in the game and buy their own home.

Just 5 years ago it was pretty hard to find an affordable first time home. Sure, there were mortgages out there that would get people into homes but homes people couldn’t afford which resulted in default. Those loans are gone and hopefully forever.

I bought my first home in the 90’s with a 8.5% mortgage loan and I thought I was getting a great deal! Today’s interest rate are incredible and I managed to refinance my current home at a very low rate for a shorter term.

So skip the tax credit blues. Buy a home because your buying power is incredible, if you get an FHA loan it is assumable for the next buyer when you sell (outstanding future sale-ability value) and because low interest rates last through out the life of your loan saving a buyer money in the long term.

The tax credit will probably go, but jump into the market today…don’t miss these low interst rates!