In an effort to off-set last year's fincial meltdown and the ensuing recession, the current administration created a tax credit of up to $8,000 for certain first-time home buyers in the $787 billion Economic Stimulus Package that was passed in February, 2009.  Through this program, you are eligible to receive an $8,000 tax credit when you purchase a principal residence if you have an adjusted gross income of $75,000 or less (or $150,000 for married couples), you have not owned a home during the three years leading up to the purchase, and, you close escrow on your purchase prior to November 30, 2009.

Translation: Under the current First-Time Home Buyer Tax Credit program, if you would like the opportunity to get an $8,000 gift from the Federal Government, you have 71 days left to get pre-approved for a loan, find a home you would like to purchase, negotiate the contract, complete all the inspections and close escrow.  The clock is ticking... Now is the time to take action!

Will Congress and our President allow this program to expire? Will it be extended? Will it be replaced by a different program?  At this point, the answer is a resounding "Who knows?"  If you want to move forward with any certainty, close escrow on your home purchase by November 30, 2009, meet the criteria outlined above, and you'll qualify for a juicy $8,000 gift from Uncle Sam.

-Aaron Cullen, Realtor, Broker, Owner Brokers Inc. Residential Real Estate