$8000 First-Time Buyer Tax Credit–Time is Running Out!
First time buyers wanting to take advantage of the $8000 tax credit must contract and close on their new home by 12/1/2009. While there continue to be persistent rumors that the credit will be extended into next year, until that legislation is passed, borrowers have about another month, at most, where they could potential contract on a home and get their loan closed in time to get the credit.
There is legislation proposed in both the Senate and in the House which extend the credit time-frame and/or expand it to include all borrowers. It has been a year since the implosion of the mortgage industry with the govenment take-over of Fannie Mae and Freddie Mac, the collapse of Lehman Brothers and many other lending institutions. The tax credit has been instrumental in bolstering the sales of homes despite rising unemployment.
While we are approaching the slowest sales season for home sales, the holidays and winter months, proponents of extending the tax credit see it as a way to keep the housing market moving forward. Detractors, however, see rising deficits and increased government spending as problematic for the long-term.
As the legislation stands currently, a first time buyer (defined as someone that has not owned a home in the last 3 years) with an adjusted gross income of $75,000 or less ($150,000 for a married couple) has to contract and close on their home purchase on or before December 1, 2009 to be eligible for the full $8000 credit.