The First Time Home Buyer Credit is an $8,000 credit that you can claim if you have not owned a home used as your primary residence within the last three years. The credit is made possible by the American Recovery and Reinvestment Act of 2009.
The catch is…to qualify for the credit, your home purchase must be made by November 30, 2009. In other words, the escrow must close by November 30-that’s less than 90 days away!
So why the urgency?
You may be seeing commercials or other advertising by real estate and mortgage professionals insisting that you should “Buy Now” if you want to take advantage of the credit. Realtors who are familiar with recent changes in lending practices are aware that escrows are taking longer to close in the current economic climate. If you are ready to purchase and you are hoping to claim the First Time Buyer Credit, the clock really is ticking! Typically, the rule of thumb for an escrow period is 45 days, but right now, there are often unexpected delays as lenders are dealing with changes in the rules for securing appraisals.
Arabel Camblor, President of the Hawaii Island Board of Realtors, puts it this way: “Realistically, if you want to take advantage of this $8,000 credit, you have about 30 days to open escrow on a property.” She also adds that buyers who qualify for the credit should not miss the opportunity to take advantage of the low interest rates available now. “It’s the Perfect Storm,” she says. So, if you qualify as a first time buyer and you are ready to purchase, don’t let this opportunity pass you by.
The countdown really is on!
For more information, visit:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
