Will the First-Time Homebuyer Tax Credit Be Extended?
Expiration of the First-Time Homebuyer Tax Credit is fast approaching. Qualified purchasers wishing to take advantage must close on a home on or before November 30, 2009. But will it be extended? Maybe. Maybe not. The only certainty at this point is that the tax credit currently in place is one sweet deal.
The biggest advantage of the current tax credit is the fact it doesn’t have to be repaid – provided the home purchased is your primary residence for at least three years following the purchase. The credit that was in place in 2008 was equivalent to, essentially, a no-interest loan.
While bills to extend the tax credit have been introduced in Congress, there’s no telling whether a next version would “sweeten” the already sweet deal. The Cash for Clunkers stimulus, which began with $1 billion in funds, saw a hefty, one-time infusion of $2 billion, but strong consumer demand quickly depleted the remaining dollars and the government put a hard stop on the program.
Will strong demand in the final days of the current First-Time Homebuyer Tax Credit force lawmakers to pursue similar action and call it quits? At a time when Congress is juggling numerous other prominent issues, in addition to huge deficits, it’s hard to imagine much being done anytime soon.
So what can you do to ensure you capitalize on this opportunity? First, have a look at our earlier blog about the $8,000 tax credit to determine if you qualify. Then, contact us to jumpstart your home search, if you haven’t already. Keep in mind it typically takes 30-60 days from the time a property goes under contract (price and terms have been accepted by both Buyer and Seller) to the time of closing. This means the countdown has started to find a home, negotiate the purchase and secure financing. It's time to get serious so don't let $8,000 pass you by!
As a lofts and condos specialist, I can help you take advantage of the tax credit opportunity before it's gone! Contact me today... Eric Solberg (C) 612-203-3016 or eric@mnloftsandcondos.com.
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