So the time has come to wave goodbye to the first time homebuyer credit. If you are working with first time home buyers and you haven’t locked down a property in escrow by the end of next month your clients might not be able to make the deadline of Dec 1, 2009 to get that rebate. Remember that escrow or the real estate transaction must be closed, finalized and done by Dec 1, 2009. Some people think that as long as the property is in the closing process by Dec 1 they would still get the credit but that is false. I’m sorry to inform you but it has to be completely closed.
An Extension to the First Time Home Buyer Credit?
With that said many people have been asking me if I knew if they were going to extend the first time home buyer credit. I had not heard of anything so I did a little research and low and behold there was a bill introduced back in June 10, 2009. This bill has not received too much attention because people were not worried about the tax credit expiring. Now that the clock is ticking I am sure the tax credit will be coming back into the lexicon a lot stronger in the next couple months
If you have never followed a bill in your life then you might want to take notice as an investor, real estate agent, loan officer etc. This one will affect you once it’s passed until it expires in 2011.
Here is what the current First Time Home Buyer Tax Credit looks like:
- You must be a first time home buyer (not owned a home in the last 3 years).
- Must close your purchase by December 1, 2009.
- Home purchased must be your principal residence.
- Income restrictions of $75,000 for a single person $150,000 for a married couple.
Home Ownership Moves the Economy (HOME) Act of 2009: H.R.2801
The new bill H.R.2801 that was introduced back in June 10, 2009 is currently in the House means and ways committee. These are the changes that this new bill wants to modify on current tax credit.
- Extend the deadline from Dec 1st, 2009 to January 1st, 2011.
- Removes the requirements of being a first time buyer and leave it open to all home buyers purchasing a personal residence.
- Removing the income restrictions completely
This new act will be called “Home Ownership Moves the Economy (HOME) act of 2009 and if passed will relieve some competition out there in the marketplace because now people will not see it as urgent to get a deal closed by Dec 1, 2009. A lot of the bidding wars out there are due to the fact that people are out in droves not wanting to miss out on the tax credit. This will help some investors get those tough to get properties.
Happy hunting!
Article Author:
Winston WestbrookWinston has written 9 articles for us.
Visit Winston's Website: http://www.westbrooknational.com
Winston Westbrook is broker & owner of Westbrook National Real Estate Company servicing the cities of Victorville, Spring Valley Lake, Adelanto, Hesperia, Apple Valley & the surrounding Victor Valley High Desert communities of So. California.
Joshua Dorkin
Charles Feldman
Ted Karsch.
{ 8 comments… read them below or add one }
I am sure the tax credit will be coming back into the lexicon a lot stronger in the next couple months
@ Bernadus, Yes that’s how it is. I am sure the media will be picking up this story quite soon
Thats the post every one should read. Thanks for sharing.
Great post, Winston! I’m sure that most people weren’t aware of the Home Ownership Moves the Economy (HOME) Act of 2009. Thanks for letting our readers know about an extremely important piece of legislation that can have a big impact on real estate.
Thanks for the comment Josh. It’s definitely been low on the radar but sure to pop up quickly.
This definitely smells like a story that will be getting a LOT of attention as the year comes to a close.
@Arlo, You got that right. My clients purchasing homes in Victorville are asking me left and right if they are going to extend it. They don’t want to miss out on the tax credit.
As a current homeowner who wants to trade up to our dream home, I have been tracking this HR 2801 since July. How I sincerely desire the legislators make it so “ALL” not just first timers can get the credit. A lot more folks could qualify easier and definitely make the jump with that sort of incentive in this continued low rate environment.