If you are planning to buy a home this year and you are a first time homebuyer, you want to make sure you close by November 30th. In order to get the $8000, you need to purchase and close on the transaction by then.
If you haven't started looking or been approved for a mortgage, you may want to do something soon. It is possible to close within 30 days – but that doesn't always happen. Sometimes the purchase agreements take longer to get accepted if you are dealing with a short sale or a foreclosure. You may need to get something corrected on your credit report and that can take a little while.
There are some exceptions to the $8000 credit – your income must be under $75,000 for those that file single, for couples the income limit is $150,000. There may be a partial credit with income up to $95,000 for individuals and $170,000 for couples. You also cannot acquire the property from a family member. Also the $8000 is limited to 10% of the sales price, so if your purchase price is under $80,000, you will get less than $8000. You do not have to pay the tax credit back as long as you live in the house for at least three years.
You must be a first time homebuyer – but as long as you have not owned a home in the last three years, you qualify as a first time homebuyer.
Don't wait until the last minute - I am sure there will be many people trying to close the end of November and you don't want to miss the credit by days! If possible, plan to close sooner - maybe September or October so you don't lose out! Or even the beginning of November!
Leslie Vanderwerf, Advisors Mortgage - lvanderwerf@advisorsmtg.com – Website
