There was a lot of speculation as to whether the First Time Home Buyer’s Tax Credit initiated this year would be extended. It took a while for Congress to make up it’s mind, but the credit is not only extended, it is expanded now to include current homeowners as well who are looking to buy another home. There are of course some conditions and prerequisites in order to qualify, but the vast majority of people will qualify.
Since the credit is given back to people as a refund or credit on their taxes, paid to the IRS, I figure the best source to check for conditons of the current program is with the IRS itself…straight from the source. So here are the details of the Home Buyer’s Tax Credit from the IRS’s website. Simply put, first-time home buyers will recieve an $8,000 credit and current home owners will receive $6,500 if they purchase a home by April 30, 2010 which closes by June 30th.
The effect of this credit should not only help to invigorate the market in modest price ranges, but the mid to upper price ranges as well. The deadline for having a transaction under contract is April 30, 2010, so the tendency for a lot of people would be to relax and wait till spring. But actually right now or soon would probably be the best time to buy a home if possible. After the first of the year, the market traditionally starts heating up, which increases competition. But with the FTHB Credit, there will be even more competition which should raise prices further. Also, interest rates now are at an all-time low. Those will not stay at the same level. So if someone is thinking about a move soon, it might be a good time to move forward…sooner rather than later.
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