A home buyer who intends to receive the tax credit of up to $8,000, that is currently available to a qualified first time home buyer, must purchase their principle residence no later than November 30, 2009. At this time there are no exceptions to that final date to close on a qualifying home. Furthermore, a homebuyer who waits until November to receive an accepted offer on a home may find procrastination to be very costly for several reasons.

It is believed by many that there are still a lot of first time homebuyers "on the fence" and if there is a last minute rush to buy homes the lending process could slow even more than it already has. The Housing and Economic Recovery Act (HERA) recent changes could add two weeks or more to some homebuyers loan process when also considering the factors of the new HVCC (Home Valuation Code of Conduct). If the tax credit is not extended, there may be a rush of buyers to meet the November 30, 2009 deadline. This last minute demand for housing could put many homebuyers in a competitive bidding process.  The supply of houses that are in many first time home buyer's price range have already been greatly diminished in recent months. Interest rates are at an all time low and any increase in rates will also increase the cost of owning a home.

The tax credit that a qualified first time homebuyers receives is up to 10% of the purchase price of the home or $8,000, whichever is less. Close after November 30, 2009 and the credit is lost! This credit that the qualified homebuyers receives is earned even when no taxes are paid.  Homebuyers who qualify for this tax credit can file an amended 2008 tax return and receive this credit even sooner. Tax professional should be consulted.

A tax credit, a good supply of homes at a great value, economic signs that the economy is improving, and all time low interest rates suggest that this is a great time to buy a home. The link below will provide more information about the first time home buyer tax credit.

 http://www.waynesvillehomes-forsale.com/blogs/david_craven/archive/2009/05/26/first-time-home-buyer-tax-credit-informatiion.aspx

David Craven
RE/MAX Mountain Realty
David@DavidCraven.com

Foreclosure and short sale search is still available (Western North Carolina) on www.WaynesvilleHomes-ForSale.com as part of the mls listing search. Homebuyers can also receive daily emails as all new listings come on the market including foreclosures and short sales. Just fill out the new listing notifier found on the mls listing search page.