If you are a first time homebuyer looking to take advantage of the $8,000 tax credit, you need to be aware that as of right now, you must close escrow by December 1st, 2009 in order to receive this tax credit. There is currently no discussion about extending this opportunity. It normally takes 90 days to close on a house, so act fast while you still can!
The credit, passed earlier this year as part of the economic stimulus package, is good for up to $8,000, or 10% of the purchase price of your new home. It only applies to people who have not owned a home in the previous three years and there are some income restrictions. What’s great is that the credit does not have to be repaid unlike a similar program from 2008.
The deadline is especially important to note if you happen to be a homebuyer who is looking for short sales, since these often take many months to complete.
Isn’t it ironic that a process called “short sale” is known for taking a long time to complete? In fact, it’s called short sale because the total sale falls short of the balance owed on a loan secured by the property sold.
For more information on the first-time homebuyer tax credit, check out http://www.irs.gov/newsroom/article/0,,id=204671,00.html
Interested in buying or selling a home in the Palm Springs or Coachella Valley area? Contact Patrick Stewart Properties today!