Act now for first-time homebuyer tax credit
16th July, 2009 - Posted by admin - 2 Comments
The first-time homebuyer tax credit of $8,000 isn't permanent. It was designed to provide a short-term boost to the housing market. Did it do this? There's some debate on that point, but spring housing sales were up from the dismal numbers registered in the winter. You could credit some of this to the large number of first-time homebuyers who entered the market.
The tax credit expires on Dec. 1 of 2009. That may seem like a long way away, but it's really not. Home sales have to actually close by Dec. 1 for first-time buyers to gain the $8,000 tax credit. That' a big difference from simply having an offer accepted.
It takes a long time for housing deals to close. Home inspections might be done. Title searches are run. Documents are gathered. Underwriting takes place. There are times when sellers need extra days to get out of their home. They may request that the closing date be pushed back.
All of this can work against buyers meeting that important Dec. 1 deadline.
So if you are a first-time homebuyer, and you do want $8,000 free of charge from the federal government, don't delay. The expiration of the tax credit is coming up sooner than you think.
By the way, there is a push on from some folks, most notably officials with real estate trade groups such as the National Association of Realtors, to extend the tax credit past the Dec. 1 deadline. They're lobbying legislators now. It's hard to say if they'll be successful, but I wouldn't be surprised. The economy, and the housing market, are still quite shaky. They both need all the help they can get.
Posted on: July 16, 2009
Filed under: finding the right loan
2 Comments
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