First-Time Homebuyer Tax Credit – Only Two Months Left

With home prices and interest rates at all time lows and only two months left before the First Time Homebuyer Tax Credit expires, many folks are taking action and looking to buy a home. The $8,000 tax credit, extended and expanded to include current homeowners in 2009, expires on April 30th, 2010.

Qualifying for the Tax Credit

In order to qualify for the credit, homeowners must be under contract on a home by April 30th, 2010 and close on the home by June 30th, 2010.

Current homeowners who have signed a contract to buy a home, on or before April 30th, qualify for a dollar-for-dollar deduction on their taxes, equaling 10% of the home up to $6,500. First time home buyers (who haven’t owned a home within the last three years), can get up to $8000 tax credit.  Married couples must both qualify as a first time buyer to get the tax credit. 

To claim the tax credit, you will need send (no electronic fillings allowed) the IRS Form 5405 and a copy of the HUD-1 settlement statement. To find out more about First-Time Homebuyer Credit filing requirements, visit IRS.Gov. 

Crunch Time

Those looking to buy a home must act quickly if they want to take advantage of the tax credit. However, there are still many homes available and time to get it all done before the April 30th cut off date if you act quickly. 

According to the National Association of Realtors (NAR), on average,  home buyers spend about 12 weeks looking for a home, which means that if you haven’t already started serious home shopping, you’ll have to step up the pace if you want to meet the tax credit deadline.

Know the Market You’re Looking to Purchase in.

Even with incredibly low interest rates and home prices, some buyers question whether they should wait and see if home prices drop further. It’s true that in some areas, home prices may continue to fall, but they are no longer ‘plummeting’ in most markets across the country. According to Patrick Newport of HIS Global, “It’s a good time to buy, but it’s still a really difficult market.”

Now more than ever, you need to know the market you’re looking to purchase in. Start by checking to see if inventory levels are high and increasing at Trulia and if foreclosure filings are on the rise at realtytrac. Even with the tax credit incentive, it may be more prudent to wait until the area you want to buy in is showing a clear indication of stabilization.

Charlotte NC Real Estate Homes For Sale

If you’re in the market to buy a home in Charlotte NC and take advantage of the First-Time Homebuyer Tax Credit before the April 30th cut-off date, Leigh Brown can help. Leigh is the leading real estate broker in the Charlotte metro area and has helped many first time home buyers find the perfect home in the right neighborhood for their lifestyle, budget and needs. 

You can reach Leigh by filling out her online contact form or give her a call at (704) 688-5005, or toll free at (866) 440-7136.

Sources:
Baltimore Sun
CNN Money
Red, White and Blue Press