All good things must come to an end and the $8,000 tax credit for Phoenix first time home buyers is no exception. The $8,000 tax credit program expires on November 30, 2009. This means you must CLOSE ESCROW on your new home purchase no later than November 30th, 2009.
The $8,000 tax credit does NOT need to be paid back and you do not need to wait until 2010 to claim the credit. One can claim it on their 2008 taxes by filing an amended return after you close on your home. Taxpayers can file Form 5405, First Time Homebuyer Credit, electronically for home purchases in 2008 to claim the first-time homebuyer credit. The IRS began processing these returns electronically on March 30, 2009.
If you are thinking to yourself, "November 30, 2009 is a long ways off". Well it's NOT - just 77 days away so you need to take the following into account:
- First, you need to actually find a home and get an offer accepted. We see many properties in Phoenix with multiple offers on them and the average person right now has lost a "bidding war" on at least a couple of houses before their offer has finally been accepted. On average, it isn't unreasonable for a buyer to spend a couple of months looking for a home before getting an offer accepted.
- Once your offer is accepted, you still need to get a mortgage. Our processing turn times right now for a typical loan average about 30 days. New rules and regulations have added a few extra days to the process.
- For anyone taking advantage of the government's buy a HUD Home for only $100 Down Program, turn-around times for getting the purchase to close have been averaging at least 60 days.
- Lastly, remember that according to the IRS, you must actually close on your home for it to be considered occupied and to qualify for the $8,000 Tax Credit.
So, if you take the 2 months of searching and add another 30 days for the mortgage, you can easily see that you need to begin NOW!
For a list of Frequently Asked Questions (FAQ's) visit www.dkhomeloans.com under "Current Home Mortgage Incentives". Before you begin your home search please contactThe Krushinsky Teamat 602-695-7575 or firstname.lastname@example.org to get pre-approved.