Time is running out for first time home buyers across the country. The government is offering first time home buyers an $8,000 tax credit if they reach settlement prior to November 30, 2009. If you are thinking about purchasing a home for the first time in your life then you should jump at the opportunity right away. Not only is the government offering the $8,000 tax credit, the housing market is still trying to work its way out of the recession that affected the entire country.
The housing market will begin to return to form over the next couple of months, since most experts feel that we have exited or are exiting the recession, which means that new and formerly owned home prices will continue to rise once again. Right now, as it stands, prices for used and new homes are at a low for the previous decade. If you are wavering on whether or not to purchase a home, take into consideration the low prices of the homes on the market today and the $8,000 tax credit offered by the government.
Anyone interested in purchasing a home for the first time should talk with a real estate agent, who will be able to answer any and all questions about the tax credit and how it can be applied to the purchase of a home. Using this credit will reduce a taxpayer’s bill or increase the taxpayer’s refund. The tax credit is also fully refundable. The home purchased using the tax must be the taxpayer’s principal residence.