The $8,000 first-time homebuyer tax credit has brought many people into the housing market that otherwise wouldn’t have considered buying a home and is allowing them the financial assistance to buy a home and begin paying on their mortgage.
However, the $8,000 first-time homebuyer tax credit is set to expire at the end of April. Homebuyers only have until April 30th to be under contract before they can use the tax credit. Also, if a homebuyer makes the April deadline they must also close on the home by June 30th.
There have been questions as to if there would be an additional extension of the first-time homebuyer tax credit and as of now it doesn’t seem there will be, but there is still time before the April 30th deadline is reached.
Homebuyer still have enough time to their ducks in a row, but they mustn’t drag their feet in getting under contract.
Home prices are still low and mortgage rates are at an affordable level, so many feel that with the $8,000 first-time homebuyer tax credit incentive, now is one of the best times to buy a home. However, entering into a mortgage isn’t something to be taken lightly and homeowners who want to use the first-time homebuyer tax credit need to take stock of their financial situation before buying a home and make sure it is in their best interest to do so.