The first-time homebuyer and repeat homebuyer tax credit extension is coming to an end on April 30th meaning homeowners and homebuyers looking to use the tax credit must be under contract on a home by that date and they must also close on the home by June 30th.
Many homebuyers have gotten into the housing market because there have been low mortgage rates to be had and affordable homes as well. The extension of the first-time homebuyer and repeat homebuyer tax credit, for $8,000 and $6,500 respectively, has also been an added incentive for many homeowners that may have been hesitant to get into the housing market.
Some homeowners were worried about closing costs on a home and the first-time homebuyer and repeat homebuyer tax credit gave them the peace-of-mind that they could eventually get some or all of that money back.
While the tax credit program has helped some homeowners it is, again, nearing an end. Not everyone that wishes to buy a home should do so and a tax incentive shouldn’t be the driving force alone to put anyone into the housing market. Potential homebuyers are cautioned to look at their personal financial situation and make sure they are financially able to afford a home before going forward.