Tax credit for buying a home scheduled to end.
The first time homebuyer and the long-time resident tax credit is schedule to end on April 30, 2010. Anyone not under contract to buy a house by this date will not be eligible for the up to $8,000 tax credit. As long as a buyer is under contract by the April 30th date they will have until June 30, 2010 to close the transaction.
There is no indication that the Government plans to extend the tax credit past the 2010 deadline. This being the case time may be of the essence. Depending on your real estate market, the 4 month time frame before the tax credit expires could pose a problem. In areas that have a heavy short sale inventory the processing time from initial offer to seller lender approval can be quite lengthy. It is not unheard of to have short sale contracts delayed by several months waiting on bank approval.
I would not encourage anyone to buy a home just because of the tax credit being offered. However if you are ready, willing and desire to purchase a home, then the tax credit plus the low starting listing prices and low interest rates available are powerful motivators for buying a home now.
Contact me in order to speak with a real estate agent in your area about the tax credit and your situation.