Time is running out to take advantage of the 1st Time Home Buyers Tax Credit.  There are only 178 days left in which to purchase and close on a home in order to be eligible.  Your opportunity to take advantage of the credit expires on December 1, 2009. 

In order to be eligible you or your spouse must not have owned a principal (the home you actually live in) residence in the past three years prior to the date you close on a new home.  So, what exactly does that mean you ask?  Well, if you own a home, but have not been living in it, but renting it out and living elsewhere, you're still eligible.  Check with your tax accountant or attorney to verify all information. 

You must live in this new home a minimum of three years or you will have to pay back the credit when you sell the home. 

You must file an income tax return in order to receive the credit.  However, you can fill out an amended tax return to this year's taxes, and receive your credit  this year.

The credit is a maximum of $8,000 or 10% of your purchase price.  In and around Will, DuPage & Kane counties, it's pretty much $8,000 as it is extremely difficult to purchase something around here for less than $80,000.

Lenders are partnering with non-profits to offer monetized credits.   Basically the lenders are providing bridge loans through private parties enabling borrowers to access the funds for down payment.  When they receive the credit from the government they in turn pay back the loan.

Hurry, this won't last long - there may never be another opportunity like this one.  Only 3.5% downpayment is required for FHA financing.  As interest rates are poised to rise, this could be the absolute best and last time that housing is this affordable.

Call me for more information and assistance navigating the real estate marketplace.