Time is Running Out for the First Time Homebuyer's Tax Credit in Lake Havasu

By
Real Estate Agent with Selman & Associates

Time is Running Out for the First Time Homebuyer's Tax Credit in Lake HavasuTime is running our for Lake Havasu first-time home buyers to take advantage of the First-Time Home Buyers Tax Credit.  It is September already!  This means you only have a few more weeks to locate a home and close escrow before the November 30, 2009 deadline.

Don't Wait or You May Lose Out

At this time, there is no extension to the tax credit, even if you are in escrow.  Sometimes, delays occur and escrow extends the expected timeline.  Loan processing may take a little longer than is expected or there may be some issue that would come up in escrow that would take time to resolve.  No matter what the reason for the delay, you will lose the tax credit if escrow does not close on or before November 30.  So, opening escow as soon as possible is critical.

Tax Credit Advantages

    * Dollar-for-dollar credit - the credit is deducted from the money you owe the IRS; any balance is refunded to you.
    * The money is free - there is no pay back required, ever.
    * In some cases, the tax credit can be applied towards your down payment or closing costs; any remaining funds will be credited to you.

Who is a First Time Home Buyer?

    * Anyone who has not owned a home within the past three years.

How Much is the Tax Credit?

    * 10% of the purchase price up to $8,000.

Income Limits

    * $75,000 for singles.
    * $150,000 for married couples filing a joint return.
    * The tax credit is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 (single) or $150,000 (married, filing a jointly).
    * There is a phase out tax credit for those earning more than the income limit - contact a qualified tax professional to see if you qualify.
    * Partial credits are available for some home buyers whose MAGI exceeds the phaseout limits - contact a qualified tax professional to see if you qualify.

Restrictions

    * The home purchased must be your principal residence.
    * You must live in the home for three (3) years - if you change residences before that time, you must repay the credit.

There has been much talk of extending or expanding the tax credit.  But, as it stands for now, the opportunity to take advantage of the tax credit will soon go away.  Remember, you must close escrow on or before November 30.  The contract date will not matter.  It is the closing date (the date you officially become the owner) that will determine your eligibility for the First-Time Buyers Tax Credit.

Donna Ball, Always on the Ball with Lake Havasu City real estate

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the foot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Arizona Mohave County Lake Havasu City
Groups:
Arizona Homes
Arizona Premiere Living
Arizona Real Estate
Local Expert
Moving to Arizona
Tags:
first time homebuyers
first time buyers tax credit
first time buyers tax credit expiration date
tax credit
lake havasu tax credit

Comments 5 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
738,254
Michael A. Caruso
Surterre Properties

Donna - we are all hoping that this incentive does not sunset in November. It's important to start lobbying now to extend the incentive, as many foreclosures are on the horizon.

September 07, 2009 11:12 AM
Ambassador
780,100
Charlie Ragonesi
Homes - Big Canoe, Jasper, North Georgia Pros
AllMountainRealty.com

Thanks for the reminder on this. At some point I will be putting a disclaimer in my contracts incase a delay for an eligible buyer loses him the 8k

September 07, 2009 11:18 AM
Ambassador
1,009,649
Harry F. D'Elia
Investor , Mentor, CSSN, Radio Coach, REOs, ABR
Precision Real Estate Inc.

Thanks for sharing your local information on this post.

September 07, 2009 11:18 AM
Rainmaker
352,179
Pat Champion
Coldwell Banker Camelot Realty

Great Post it is now the time to buy before the deadline. How right you are the FTHB needs to act now before it is too late. We all need to spread the word.

September 07, 2009 11:20 AM
Rainer
114,839
Kyle Jan
Phoenix AZ Homes for Sale

Thanks, we need to make sure that everyone is aware and doesn't wait until the last possible moment like last year with the DPA's.

September 22, 2009 12:12 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the sunglasses to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
11,875

Donna Ball

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the sunglasses to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Lake Havasu, Lake Havasu City, Arizona, Kingman, real estate, Active Rain, Lake Havasu News, Lake Havasu Events, Lake Havasu information


Donna's Listings
 
View Donna Ball's listings of homes for sale in Lake Havasu City

For Buyers
 
Find out more about buying Lake Havasu real estate

For Sellers
 
Find out more about selling your Lake Havasu real estate


Join My Community at MyBloglog!
Real Estate Blogs - Blog Rankings