75 Days Until $8000 First Time Home buyer Tax Credit Disappears

Only 75 more days until the current first time home buyer tax credit ends. Let’s find out if you qualify and what some hypothetical time lines look like.

Qualifications:

  • The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
  • The tax credit does not have to be repaid.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
  • The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
  • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
  • $8000 homebuyer tax credit

    FHA

    If you are an FHA buyer you will need at least 45 days to close. If you’re buying a bank owned/REO property it may take up to a week to get an executed offer. That leaves 20 days to find your property.

    Conventional

    Most conventional loans can be closed within 30 days. Still factor in time for bank/seller response.

    Cash

    Cash offers can usually be closed within three weeks depending on the seller and the result of your inspections.

    Short Sales

    Considering a short sale? Sorry to say, entering into a short sale contract at this time will more than likely close after the November 30th deadline. Though sometimes in good condition and priced well, they take between 3-6 months to close.

    $8000 homebuyer tax creditCreate a cushion in your time line

    If at all possible, have your closing scheduled for at least 7 days prior to the deadline. Many other buyer’s are taking advantage of the credit and will be closing at the end of November. The last thing you want to happen is an escrow extension beyond the deadline.

     

    You need to remember that many markets are very active right now. Properties that are somewhat well maintained and priced right are receiving multiple offers.  It may take one, two, or even more offers to finally get into escrow. The most common feeling of these multiple offers is frustration. Don’t be discouraged. Your Realtor is there to help you find a home that has a great possibility of closing by the deadline.

    Posted in Educate Yourself, For Buyers.

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