A house is without a doubt the most expensive thing most people will buy in their lifetime. Since some can easily total 5-10 times the cost of your average brand new car, this puts them out of reach for some consumers. With the new United States tax credit, families might still have a chance at owning a home.
The first time home buyer tax credit currently in place is only going to last until the end of December, 2009. If you are planning on buying a home, acting fast is going to be a requirement. Sometimes the paperwork necessary in buying a home can be delayed, and if you aren't before deadline enough, you could lose your chances at obtaining the tax credit. It's unclear if the tax credit will be available in 2010.
Buying a home is costly, and even 10% off the total price could equate into thousands of dollars. When buying a home for the first time with the 2009 tax credit, you are able to shave off the 10%, up to a total of $8,000. Clearly this is a substantial amount of money that can bump up your chances at securing a home that you can afford and like.
There are some restrictions on who can apply. You should not have previously owned a home, and you can't make over $75,000 in a fiscal year. If you are married the terms are a bit different, allowing you or your spouse to make a bit more. Those making more than $75,000 and less than $95,000 for a single person can get a reduced tax credit.
Take note that the first time home buyer tax credit of 2009 won't have to be repaid, unlike the tax credit enacted in 2008. The 2008 tax credit was more of an interest free loan, whereas this tax credit never has to be repaid to the government. Essentially, it's free money given in hopes the purchase will contribute to the economy.
Don't purchase a home before consulting your accountant to see if it qualifies for the tax credit. Some types of homes may be admissible, while others are more questionable. The mobile home is an example of a home that can qualify, and so too can a boat home. In general any living space that a family can live in qualifies, but it's good to be sure just in case.
In Conclusion
Because the tax credit in effect is in a limited term, you should start looking a homes you would like as soon as you can. The paperwork will take some time to get going, so a month before the expiration date you should start the process of closing the deal.
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