Time is a runnin’ out! Here is one last call to all you FIRST-TIME HOME BUYERS! Don’t delay. Get those offers in ASAP.  As I am sure you have heard you are eligible for up to an $8000 tax credit on your 2009 tax return.  And when they say tax credit that is what it is. It is a dollar for dollar reduction of what you owe the government. Very often this will mean cash back to you!! $8000 could be a new car.  $8000 is one heck of a vacation! Or for those prudent among us…$8000 is a mighty fine cushion in one’s bank account, come that rainy day.

Now here’s the rub. If you want to be able to take advantage of this fantastic opportunity, you need get qualified now, have your realtor write the offer, get it accepted and get that home into escrow immediately! No pressure here!  In order for you to close on this by the November 30th, 2009 deadline you will want to get an offer accepted in the next few weeks!

Now, to take off the pressure just a bit there may be a chance this tax credit will be extended into 2010. But, we don’t know this for sure. If you wait, it is a gamble. So, I suggest you do your absolute best to find that home now!

Now, let’s talk detail. What exactly does it mean to be a first-time homebuyer? Well, technically you can have owned previously. However, you may not have owned in the full three years prior to the purchase of this home. So, if you sold a home 2.9 years ago…sorry! But, if you sold a home four years ago, and rented in the meantime, you are eligible!

You are probably wondering how much you will really receive. Yes, that is an excellent question. If you were to purchase an $80,000 home you could receive the maximum tax credit of $8000. Essentially, your tax credit is 10% of the purchase price of the home. If you happen to be buying a home that is less than that price your tax credit will be less than the max allowed.  Simply calculate 10% of the home value and you have your amount.

Now let’s talk a bit about what types of homes qualify for this tax credit. Thankfully, any home that would be considered a principal residence works! This includes single-family homes that are detached, attached homes like townhouses and condominiums, manufactured homes and even houseboats! Do keep in mind that this program does not allow you to purchase a home from your parents, grandparents, children, grandchildren or spouse.

So…get out there, one and all! Let’s take advantage of this fantastic program and pray that the government finds it in their heart to extend this ever-so-useful credit into 2010! Please contact us for further questions and go to the tax credit site for more detailed information!

photo credit: wilhei55

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