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First Time Home Buyers Under The Gun!...

By
Real Estate Agent with Real Living Hagan Realtors | Pinehurst ~ Southern Pines, NC

Although the credit actually expires November 30, 2009, it can sometimes take up to 60-days to close on a home which is why we write... First-time buyers have only about two weeks to find a home!

Buyers not under contract by October 15 have little chance of meeting the November 30 deadline and therefor successfully attaining the credit.

This is especially true for purchases involving short sales and foreclosures.

Congress passed the First-Time Home buyer Tax Credit program as part of the 2009 economicc stimulus plan.  IRS Form 5405 outlines the program criteria which include the following stipulations:

  • Buyer may not have owned a "main home" in the past 36 months.
  • The home may not be purchased from a parent, spouse, or child.
  • Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filers.
  • The credit is capped at $8,000 or 10% of the purchase price, whichever is less. 

Remember the First-Time Home Buyer Tax Credit is a true tax credit and not a deduction. This means that when a tax filer who claims the full $8,000 and whose "normal" tax liability is $5,000 would receive $3,000 cash from the US Treasury when their tax return is processed by the IRS.

Simply put... If you don't close by November 30, 2009, though, you don't get the credit.

The clock is ticking. If you're planning to use the First-Time Home Buyer Tax Credit, the time to act is now!

Contact us for more information and click here to search the MLS for properties matching your wants and needs.

Thank you for your interest and in advance for the privilege of serving you!

With our highest regard,                                                           

Wayne and Lynda Gomillion
Trusted Names in Real Estate

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Comments (3)

Richard Dolbeare
Inactive - Wailuku, HI
Living the Hawaii Lifestyle

A buyer's agent is also under the gun because that agent wouldn't want to be the one to cause a 1-day closing delay that lost the credit.  There's a hidden liabiiity here!

Oct 05, 2009 05:35 AM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Wayne and Lynda, I'm hoping that all eligible particapants are taking full advantage of the program.  It's not going to be repeated or extended but is exceptional for those who qualify.  Thank! 

Oct 05, 2009 05:37 AM
Wayne and Lynda Gomillion
Real Living Hagan Realtors | Pinehurst ~ Southern Pines, NC - Pinehurst, NC

Richard, thank for your comment. You make a great point... We real estate practitioners need to stay sharp!

Kevin, Thanks for commenting. We purchased not so long ago, and wish we could have taken advantage of an opportunity unprecedented opportunity such as this!

Oct 05, 2009 05:50 AM