Why Your New Home May Not Qualify For The $8,000 Tax Credit
To qualify for the extended $8,000 tax credit or $6,500 tax credit the government is giving to first time buyers and existing home owners, you must be under contract to purchase a home by May 1, 2010 and settle before July 1, 2010.
The problem presented to many new home buyers is that it takes many builders at least 4-5 months to build a home. This time frame can increase depending on the size of the home (have your agent check with the builder). Since it is currently near the end of January, most homes will not be finished and ready for settlement until the end of June putting buyers outside of the time frame for receiving the tax credit.
It is possible that these new homes will be completed early, though you will be hard pressed to find a builder to make you a promise regarding this. If you are shopping for a new home and want to be settled by July 1st to get the tax credit, then you need to find a builder who already has permits pulled on your lot or find a spec home… Good luck.
If you are committed to buying a new home and can’t get the tax credit, don’t loose any sleep over it. There is a small chance they will extend it. However, you won’t gain anything by not buying. You still have the benefit of buying while interest rates are low and this market’s prices are still attractive.
Looking For New Construction Representation?
flickr photo credit- wilhei55
Leave a Reply
Featured Areas
