Congress Passes Tax Credit Closing Extension and Flood Insurance Extension

Great News in the Real Estate Industry! 

What does this mean? 

Tax Credit Closing Extension:  Means that anyone who had a ratified contract on a home by the Spring Tax Credit Deadline of April 30th, now has a few more months to get their loan closed.  Sometimes in the world of home loans, things can hold up the process of closing, and the original timeline only gave homeowners 60 days to close.  Normally that timeline should have been plenty of time, however, due to so many patrons taking advantage of the credit, the banks and closing companies have been working double and triple overtime to make things happen!  Thank you Congress for passing the extension!!!

Flood Insurance Extension:  If you are familiar with flood maps, you'll know that most of our area is in a moderate to high risk zone.  In this case your mortgage company will require you to carry a flood insurance policy on top of your regular home owners insurance.  Due to recent hurricanes and other flooding storms the majority of insurance companies have been refusing to issue new policies on flood insurance making it nearly impossible for buyers to obtain a mortgage.  Now, The United State Senate extended the National Flood Insurance Program (NFIP) through September 30th.

The National Association of Realtors says "The National Flood Insurance Program (NFIP) provides flood insurance to homeowners in participating communities in flood-prone areas, who could not otherwise obtain coverage due to cost or ineligibility. Without insurance provided through NFIP, property owners in federally designated areas across +10,000 communities nationwide could not obtain mortgages.  The NFIP also produces the Flood Insurance Rate Maps (FIRMs), which are critical for the transaction of properties located in, or adjacent to, a floodplain. If these maps are not updated regularly, the information may be incorrect and a buyer may be unaware that a property is at an increased risk for flooding."  So finally, those who have been on hold for the last month can now move forward!  Thanks again Congress!

Please let us, the Shannon Edwards Team, know if you have any questions about any of the above!  We're here to help and are grateful to be your resource for all your Hampton Roads Real Estate needs!