August 11th, 2009
$8,000 First-Time Homebuyer Tax Credit Deadline Nears
Uncle Sam’s $8,000 Tax Credit for first-time homebuyers is fast approaching its December 1, 2009 deadline, and with less than four months to go, potential buyers are encouraged to start shopping for a home they can afford before time runs out.
As part of the American Recovery and Reinvestment Act of 2009, the Federal Housing Tax Credit of $8000 provides qualified first-time homebuyers a helping hand in buying their dream home. It also gives the deflated housing market a much-needed boost by providing significant down payment support to first-time homebuyers in these rocky economic times. While there have been reported issues of unqualified homebuyers fraudulently claiming or attempting to claim the Tax Credit, the response is quite positive as several states report success of the Tax Credit driving traffic to residential developments and increasing sales in the market.
The last day to cash in on the Tax Credit may be a few months away, but getting your new home won’t happen overnight. Realtors and builders are pushing prospective buyers to start now. Starting now means getting a sense for what you can afford based on your down payment, credit score, and job history. Don’t forget to review your credit report for possible errors at AnnualCreditReport.com.
Buying a new home can take anywhere from 45 to over 110 days when you consider finding the perfect home, getting approved for a loan at the right mortgage rate, navigating inspections, and not to mention having your offer accepted and still managing the multitudes of paperwork with escrow. Adding a Tax Credit into the closing process will only introduce more red tape and complications, providing additional opportunity to slow the whole process down.
To be considered eligible for the Tax Credit, single people can have an income of up to $75,000, a couple can have a combined income of up to $150,000, the prospective buyer(s) cannot have owned a principal residence in the last 3 years, and the home must be purchased after January 1,2009 and before December 1, 2009. The Tax Credit available is equal to 10% the home’s purchase price up to a maximum of $8,000. What is most exciting about this Tax Credit is it does not need to be repaid at all—you can thank Uncle Sam for that.
Recent stirrings within the Senate and Congress point to some lobbying extending the $8000 Federal Housing Tax Credit beyond the December 1, 2009 expiration date. Right now, the limited shelf life on the Tax Credit means that buying a new home, especially if the government is footing $8,000 of the bill, is not to be put on hold. Act now or prepare to build your white picket fence somewhere else and at a steeper price.
Related posts:
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- Fact Sheet: Home Buyers’ Tax Credit and Unemployment Benefits Extension When President Obama signed H.R.3548 – Worker, Homeownership, and Business Assistance Act of 2009, popularly known as the Home Buyer...
Really nice blog, It also gives the deflated housing market a much-needed boost by providing significant down payment support to first-time homebuyers in these rocky economic times.
jacksmith
thanks
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