First-time Buyer Tax Credit Window Closing

Two recent articles, one written by Reuters and the other by The Los Angeles Times, is each stressing the window opportunity for first-time buyers to take advantage of the $8,000 tax credit is closing rapidly.

“Start house hunting now to qualify for tax credit for first-time home buyers”, is the headline for the LA Times.

“Race is on as U.S. home buyer tax credit nears end”, is the Reuters headline.

The bottom line is the clock is ticking FAST! Qualified borrowers need to have house offers ACCEPTED by the end of September to assure lenders enough time to beat the November 30 federal deadline to close deals. Even then, the way escrows have been delayed lately by third parties involved, there is little time for delays.

For loans backed by the Federal Housing Administration (FHA), which require a minimum 3.5 percent downpayment, the $8,000 can be applied upfront toward the purchase rather than later on tax returns like other mortgages.

So GET BUSY first-time buyers!

Comments

[homes for sale philippines]

I think the closing time is 'til April, that's what I read.

Deirdre G

[Bob Wegener]

Hi Deidre,

You are correct. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

Thanks for your comment. I originally wrote this post on August 21st of last year. At the time, it was correct. But this is the latest information.

[Deirdre]

Yes Its true Thanks :)