Those interested in taking advantage of a first-time home buyers credit had better get moving.
That’s the word of Abby Hotchkiss, assistant manager for Real Estate One Professionals, 875 S. Ortonville Road, who said the government tax credit has worked very well locally.
‘It’s been outstanding for our business,? said Hotchkiss. ‘But it’s all going to end soon’buyers need to have the deal completed by no later than about Oct. 15 to get the deal done by Nov. 30. Right now FHA loans are taking about 30 days to get back.?
A non-repayable tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after Jan.1 and before Dec. 1, 2009. The tax credit is available for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. The tax credit works like an interest-free loan and must be repaid over a 15-year period.
Since the program started earlier this year, Hotchkiss estimated that 65 to 70 percent of her business were first-time home buyers who utilized the tax credit.