Time Is Running Out For First-Time Home Buyers And the $8000 Tax Credit

If you are a first-time home buyer and want to take advantage of the $8000 tax credit, time is really running out now.

The deadline to take advantage of this credit is before December 1, 2009.

What does this mean to first-time home buyers?

Well, it takes about 30-60 days to close on a home barring any issues that may arise. It’s now September 17, 2009. A buyer must find their home now in order to close on either October 17, 2009 or November 30, 2009. Thats just a little over 60 days people.

If you are someone who doesn’t like to be rushed, perhaps this time crunch is not for you but if you are someone who wants to buy their first home and feels that this credit is well worth this final push, then get out their with your buyer agent today and find your home.

This also means that you need to have your financial situation already taken care of. You will only delay your process more if you go out to view homes without first being approved for your mortgage.

A few other quick facts worth mentioning are that a first-time home buyer is a buyer who has not owned a “principal” residence during the last three years prior to this purchase. This also means that if you are married and one of you has never owned a home but the other has, neither of you are qualified for this tax credit.

The amount of the credit is equal to 10% of the purchase price with a maximum credit of $8000.

How can you claim your tax credit? You can claim your tax credit by completing form 5405 to determine first, how much of the credit you will receive and then claim that amount on line 67 of the 1040 tax form for 2009 tax returns.

I would advise speaking with a qualified, licesned accountant to answer all of your questions.

I hope my article answers some of your questions. Now, get out there and find your dream home.

Renee Porsia is a Realtor based in Philadelphia. Learn more by visiting her website.