Extended and Expanded
It is amazing to me that more people haven’t taken advantage of the $8,000 Tax Credit for first time homebuyers. You actually could have owned a h
ome before, but not within the past 3 years. The credit has been renewed, but only until April 30, 2010. That leaves 4 months to find your home. Many people wait until the last minute for things, but this is not the way to take advantage of this benefit. You must have your home under contract by April 30, but have until July 1, 2010 to close. Of course, it usually does not take 3 months to close on a home, but that is the rule.
Wanting to wait is understandable with the prices we have now. Many people feel they have not hit bottom, but they are so low, it only makes sense to buy now and take advantage of low prices, low loan rates and the tax credit.
New to the Extended Tax Credit is the inclusion of a $6500 credit for homeowners that have owned and lived in their principal residence for 5 of the previous 8 years. This opens up opportunity for people who are living in their home and want to move up. Even though they may not get the price they could have gotten for their home 5 years ago, they also will be paying much less for that bigger home they want now. Making the decision to take advantage of the opportunity the government has given to us with this credit, is really an individual decision and sellers and buyers should talk to their accountant to see how this will affect their bottom line.
