EXPIRATION of $8,000 Tax Credit for Homebuyers

NOW IS THE TIME TO ACT if you want to be eligible for the $8,000 Tax Credit for First Time Home Buyers that’s available as part of the Housing and Economic Recovery Act of 2008.

Eligible properties include condos, townhouses and single family homes to be used as a principle residence by people who have not owned a home in the last three years. However, the tax credit is only available for a limited time. It ends November 30^th, 2009 and you must close by that date, not just have the property under contract.

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First Time Homebuyers Programs Expiration of $8,000 Tax Credit for Homebuyers Seller Buydowns are Key in Today’s Market Developer and Builder Incentives

I’ll provide more details of this great program later in this article, but with that important November 30^th deadline in mind, you must get started now. Cherry Creek Mortgage Company, Inc. has recently researched the timeline and suggests if you plan on buying a new home and using the tax credit; you need to start the process by July 31^st, 2009.

You need to take action right away because the home buying process takes time.

Here are some other important reasons:

• There will not be an extension of the deadline.
• There will be a rush of business as this deadline approaches that could cause delays.
• Realtors® and loan officers will be working with numerous buyers.
• Title companies will be overwhelmed in October and November.
• Lenders’ underwriting time will at least double.
• New rules for appraisers have already caused delays. Insurance agents will be writing many new policies.
• Home inspections and possible repairs prior to the purchase can also cause delays.

Remember, you must close by November 30^th, 2009.

Now let’s take a look at some of the details of the Tax Credit. A first time homebuyer is someone who has not owned a principle residence for a three-year period before the date of purchase. When the buyer files taxes for the year in which the home was purchased, they will be able to subtract the amount of the tax credit from the Federal income tax liability, increasing the refund or reducing the amount owed. The credit directly reduces the total amount of taxes owed. This is different than the initial Recovery Act, which required a repayment over a fifteen year period. The Economic Stimulus Plan has waived this recapture.

Here are the steps you should take right away:

1. Call Cherry Creek Mortgage Company, Inc. and get pre-approved. This only takes a few minutes and will give you a foundation to start your home search.

2. Enroll in our Home Buyers Network (HBM). This is an online property search that you can use on your own. Like the free Multiple Listing (MLS) search available at OwnACondo.com, you can use HBM on your own at your convenience.

3. Call your OwnACondo.com Realtor®. These real estate professionals are your best source going forward in the home buying process.

4. Submit income and down-payment documentation to Cherry Creek Mortgage Company, Inc. for financing approval.

5. Submit your accepted contract, and obtain appraisal and title on your new home!

The preceding article is provided as a complimentary service to OwnACondo.com for general informational purposes only. It is not intended to provide a comprehensive guide to the subject discussed. The descriptions, terms and definitions contained within are solely the responsibility of the author. Contributors to this regular feature include various Chicago-area mortgage lenders. No legal suggestions or financial guidance are intended, nor should they be implied. Be sure to contact a mortgage lending professional of your choice, as well as an acountant, for more information and/or to discuss details of your specific situation.