Consider this my public service announcement: your opportunity to pocket $8,000 if you buy a new home as a ‘first time homebuyer’ is almost over (12/1/2009). The stimulus (which comes on behalf of taxpayers not buying their first homes) has spurred investments in entry level homes. Silicon Valley’s prices haven’t come down enough, (as viewed by the rent vs. buy ratio) so I’ll be sitting this one out.
To qualify for the $8,000 tax credit, you are considered a first time homebuyer if you (or your spouse)
- Get ‘Em While They’re Hot! (pnwra)
haven’t owned a home in the last 3 years. Yes, if you moved to an apartment you can now move back into a home. You should read this site from the National Association of Home Builders for their excellent FAQ section. As expected, first time homeowners are flocking to this program. The questions become: does having this credit help the market? Were these buyers going to buy anyway, but were pushed over the edge when offered ‘free money’?
Regardless, I expect that many people still on the fence will be moving to buy homes before the deadline is up. Remember it takes time, up to 2 months, between you locking down a mortgage and closing the deal. Budget this time into your home search so you don’t miss out on the credit. Of course, Congress could always extend the credit at the last second, just like with the “Cash for Clunkers” program. If the intended effect of the legislation was to spur first time homeowners to purchase homes, it is succeeding. My question is: what does it cost?
Anyway, if you’re looking for a house and you fit the bill, hit it up. And do it soon; it takes time to close the deal. If you aren’t looking now, start tomorrow. Readers, what do you think?
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