Time Running Out for the $8,000 Homebuyer Tax Credit

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

A quick reminder for you would-be first time homebuyers out there- your chance to receive the $8,000 tax credit is growing more and more limited. According to the Internal Revenue Service’s (IRS) website, you have until November 30, 2009 to close on a home mortgage in order to receive the tax credit. Commonly, prior to closing you must have title insurance, homeowner’s insurance, termite inspection certification, water and sewer certification, certificate of occupancy or building code compliance letter, and a final inspection by you and your real estate agent.

To meet these requirements, you are looking at a minimum of 30 days from the time of commitment to the time of closing, but in many cases it could take as long as 60 days. So if you’re thinking about buying a home and wish to receive the tax credit, you must start the process no later than October 30, 2009- and that is pushing it close. Optimally, you’ll want to start no later than September 30, 2009.

Don’t forget, only first time homeowners are eligible for the tax credit, meaning you cannot have owned a home within the last three years. Furthermore, the home you are purchasing must be your primary residence and cannot leave that status for at least three years in order for the loan to be completely refundable.

For more information, please visit the IRS website, or federalhousingtaxcredit.com