RealEstate Investing:Time Running Out for ,000 Home Buyer Tax Credit. Or Is It?

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The First-Time Home Buyer Tax Credit is part of the American Recovery and Reinvestment Act of 2009.  In it, Congress authorized a first-time homebuyer tax credit of up to ,000 for home buyers meeting certain qualifying criteria.  The program’s goal was to stimulate the real estate market and the evidence is that it’s worked.

But time is running out for credit - it expires December 1, 2009.

What that actually means is a buyer must have closed on their purchase by December 1, 2009. With closings taking much longer than they did last year, buyers only have a small window of opportunity.

I would recommend that if you’re planning on using the credit, have the home you want to buy under contract no later than October 2, 2009.

There is a good chance Congress will extend the credit but the deficit may get in the way. See Congressional Quarterly article. We’ll see what happens when Congress reconvenes in September.