As you can see from the active graphic  in the right column, the clock is ticking on the $8000 Tax credit for first time home buyers, and time is running out.  While the National Association of Realtor and the National Association of Home Builders push hard for extension, the only thing we know for sure is that the current programs ends December 1, 2009.

If you are considering buying a home, a few points to remember:

• The credit is good for 10% of the value of the purchased home with a maximum credit of $8000.
• There are income limitations
• There is a 3 year recapture period; so plan on staying in your new home for a while.
• You don’t really have to be a first-time buyer.  If you have not owned a home in 3 years, you are eligible.

The post also mentions that under certain conditions, the tax credit can be used toward the down payment.  This is true in Tennessee, as the Tennessee Housing Development Administration is providing supplemental loans (for $8000) for buyers to use as down payment, with buyers paying back the money when they receive the check for the credit a few weeks after closing.

Remember, with new federal guidelines, it is taking longer to close on a property than in the past.  To be safe, I would allow 45 calendar days from contract execution to closing.  That means you need to be ready to buy and be under contract by Mid-October to be safe.  I anticipate a “last minute rush” of folks going for the credit, so if you are qualified, now is the time to get rolling.

Contact me for more information about the Tax Credit program and buying a home.

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
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