Time Running Out for Homebuyer's Tax Credit
Time may be running short for those who are wanting to use either the first-time homebuyer tax credit or repeat homebuyer tax credit on their purchase of a home. The program is requiring that both first-time homebuyers and repeat buyers who qualify for either tax credit are under contract for their home by the end of April and have closed on the home by the end of June.
Many homes are available and interest rates are low thanks to the Federal Reserve. So, many people are buying homes at lower prices, with lower rates, and getting a tax credit on top of it all.
There have been many people who have criticized the program as wasteful or useless, but there are many who are able to use the first-time homebuyer tax credit or repeat homebuyer tax credit as motivation for buying a home, which is bringing some homebuyers a lower payment than some apartments.
There are a few months left to take advantage of either the first-time homebuyer tax credit or repeat homebuyer tax credit but there could be a danger in waiting as it may take longer to get under contract and close than the tax credit program allows.
If you think that you want to use the tax credit in the purchase of a home, but haven’t started looking you may want to up your efforts. Mind you, you should first and foremost look for the house you want and can afford, not the best one to buy so as to use either the first-time homebuyer tax credit or repeat homebuyer tax credit.
However, if you can get the best of both worlds then it could go a long way in helping you financially. Just remember April 30th is the day you must be under contract and June 30th is the last day you have to close on a new home and still qualify for either tax credit.
