Bozeman, MT (Grassroots Newswire) September 28, 2009- People considering the purchase of their first home may be missing a valuable opportunity if they delay much longer, according to Robyn Erlenbush, local ERA® representative. The American Recovery and Reinvestment Act of 2009 included an enhanced First-Time Homebuyer Federal Tax Credit, a housing stimulus that provides a maximum tax credit of $8,000 for first-time home purchases.
"The credit is due to expire November 30, and given the time it takes to find a home, secure financing and close on a property, potential buyers should act without delay," Robyn Erlenbush said. However,Robyn Erlenbush points out that to be eligible for the tax credit, qualified first-time buyers must purchase and reside in the principal residence before December 1, 2009. Other eligibility requirements apply, including income limits, but individuals who exceed the limit may be eligible for a partial credit. Buyers should seek advice from a professional tax advisor for specific tax calculations.
Since its inception earlier this year, the $8,000 first-time homebuyer tax credit has brought 1.2 million new buyers into the market, 350,000 of whom would not have purchased a home without the credit, according to the National Association of Realtors® (NAR), a leading advocate for homeownership and housing issues.
"ERA Real Estate has joined forces with NAR and our other colleagues in the real estate profession to petition Congress to keep this recovery going by extending the tax credit through 2010," Robyn Erlenbush said. "Housing has traditionally led our nation out of economic downturns, and can do so again."
Robyn Erlenbush noted that, while there are industry efforts underway to extend the tax credit deadline for first-time buyers, and others to expand its scope to include move-up and repeat homebuyers and remove or adjust income qualifications, the outcome of the lobbying campaign is by no means certain.
"Consumers can assist in this effort by writing to their Senators and Representatives to tell them of the successes with the tax credit thus far, and urge them to extend it now," Robyn Erlenbush continued.
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