Earlier this year as part of the economic stimulus package, there was a grant offered by the government for up to $8,000, or 10% of the purchase price, and applies to people who have not owned a home in the previous three years. (There are some income restrictions.) The best part: Unlike a similar program from 2008, the credit does not have to be repaid.
The bad news: It ends on Dec. 1.
Because it usually takes around 90 days to close on a house after a contract is signed, buyers have very little time left to act. As of Thurs., Aug. 27, there were only 96 days left before the credit ends.
So if you want to take advantage of this money, why are you still reading this article? "Get out there and start looking for a house"
The National Association of Realtors attributes much of this activity to the first-time buyer tax credit. It estimates that 1.8 million buyers will file for the credit, and 350,000 of them wouldn't have been able to buy without it.
Now remember, if you are in the market to buy a short sale type of property, you will NOT have the time to close on the property before Dec 1st. The banks are taking two to four months to approve a short sales.
Johnny Isakson, R-Ga., who is a former real estate broker, is pushing legislation to extend the tax credit through next year, increase it to $15,000, include non-first-time homebuyers, and remove income restrictions.
Regards,
Miguel Peralta & Marco Peralta
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