Does a short sale have to be approved by April 30th to qualify for the tax credit?

J0316865 No. You must have a Purchase Agreement signed and delivered by both parties by April 30, 2010, but contingencies do not have to be met by that date. This includes all contingences, such as inspection and financing contingencies, association document review and short sale approval contingencies.

However, you must close by June 30, 2010 in order to qualify for the tax credit of $8,000 for first-time homebuyers and $6,500 for repeat buyers.

You are considered a first-time homebuyer if you have not owned a home for 3 years. Repeat buyers must have owned their current home for at least 5 years. Although you do not have to sell your current home to qualify as a repeat buyer, your purchase must become your primary residence.

See related posts below for more details.

Sharlene Hensrud, RE/MAX Results – EmailHomesMSP.com

RELATED POSTS

From the National Association of Realtors…

From the National Association of Home Builders…

'Ask an Expert' from the New York Times

From the IRS…

  • Homebuyer Tax Credit (Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009)
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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.
1 Response
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