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The Clock is Ticking ~ Want the First Time Buyer Tax Credit? Hurry!

By Mike Mitchell

Real Estate Agent with Kee Realty

October 09, 2009 01:34 AM

The clock is ticking - 52 days and counting for the first time buyer tax credit. It seems like there's been a surge in activity as many buyers are scrambling to get a home under contract this month.

It can still be done - make sure you have a good buyers agent and a good mortgage representative. Also make sure your Realtor and Mortgage officer are aware that you are trying to close in time for the tax credit. Good communication is going to be the key to success.

In order to claim the first time buyer tax credit, you must close on your home by November 30th, 2009. That means as of today, there is just 52 days left. If you were hoping to take advantage of this tax credit & I'm not trying to panic you, but if you do not have a home under contract right now, you realistically only have 2 - 3 weeks to find a home when you consider it takes 30 to 45 days to close from contract. There is no guarantee that it will close in time, so I would not recommend waiting until the very last minute. Also, Thanksgiving will come into play, where many title company's and lenders will be closed for possibly 2 days.

Do you qualify to receive this credit?

You must be a first time home buyer. First time buyer defined as not having owned a principal residence in the past 3 years
Home purchased must be used as your principal residence
Home must be purchased between Jan. 1, 2009 & Nov. 30, 2009
Max. income of $75,000 for single person & $150,000 for married couples
Must own home for 3 years after purchasing

What's the difference between last years first time buyers tax credit and this years? The 2009 tax credit has been raised by $500. from $7,500 to $8,000 and most importantly, the 2009 tax credit does not have to be paid back, as long as you own the home for 3 year after purchasing.

For more info read First time buyer tax credit FAQ's

If you'd like to start looking for homes and take advantage of this tax credit and buyers market in Macomb County sign up for a free Listingbook account and search the mls on your own personal website! Absolutely FREE!