First-time Homebuyers

If you are a first-time homebuyer, now is a great time to buy a new house. Some of you may have heard about the tax credit for first-time homebuyers established in 2008, under the Housing and Economic Recovery Act. It was worth up to $7,500, and perhaps spurred some real estate activity.

But I’m guessing everybody has heard about the American Recovery and Reinvestment Act (ARRA), more commonly known as the Stimulus Act, of 2009, which expanded the first-time homebuyer credit up to $8,000 for home purchases made in 2009 before Dec. 1. However, the deadline was recently extended, in an effort to continue to spur the market.

Now, according to the IRS website, “taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010.” ~ http://www.irs.gov/newsroom/article/0,,id=204671,00.html

This can be a very good deal for first-time homebuyers who purchased a home in 2009, who can actually claim the credit on either their 2008 return or their 2009 tax return, which is due on April 15, 2010. For more information, visit the IRS question and answer section at: http://www.irs.gov/newsroom/article/0,,id=187935,00.html

If you are a first-time homebuyer who is ready to buy a house now, give me a call at 320-894-7528 or e-mail me at noah@farmlandman.com.

Happy Easter!