Perhaps the most significant stroke of President Obama’s pen up to this point actually took place during his first month in office – on February 17 of this year – when he signed The American Recovery and Reinvestment Act of 2009 into law.  The federal tax credit of up to $8,000.00 for first-time homebuyers is an economically beneficial component of the act that a great number of U.S. taxpayers have enjoyed during the past 7 months.  But if you are a hopeful first-time buyer who has not yet seized this opportunity to save thousands of dollars on a residential purchase this year, be advised that only 3 months remain before the tax credit offer expires!  As of December 1, 2009, first-time homebuyers may no longer register for up to $8,000.00 in tax savings from Uncle Sam.  And remarkably, this is a tax credit that buyers do not have to pay back. This is really an incredible development, considering that the 2008 version of the ARR Act included up to only $7,500.00 in first-time homebuyer tax credit which had to be repaid.  On paper, that so-called credit was actually behaving as a government loan, rather than the much needed recovery funding assistance the tax credit became this year.

To qualify for the credit as a first-time homebuyer, an individual must not have purchased a new or used home (as a primary residence) within the past 3 years before the date of purchase.  Ineligibility of one spouse in a married couple means that neither spouse is eligible for the credit.  However, a parent who does not qualify may co-sign on a home loan for a son or daughter who is a first-time buyer and the son or daughter will receive the tax credit (as long as the son or daughter claims the home as primary residence).  A range of questions regarding tax credit eligibility are answered at the Internal Revenue Service website.

Additionally, to be eligible for the First-time Home Buyer Tax Credit, buyers must close escrow before December 1, 2009.  If you are interested in taking advantage of this tax incentive, we encourage you to start looking for your new home now in order to guarantee meeting the deadline.

Patrick Walsh, your local National Association of Realtors ® Green Designee realtor in Tempe, Arizona, is also your reliable source for information you need regarding the 2009 federal tax credit for first-time homebuyers. Let Patrick Walsh guide you through the steps involved in applying for the tax credit as you work together to locate your new home in the Tempe, Arizona area. Whether buying or selling, rely on Walsh and his team of realty experts to provide you with excellence in customer care and service throughout every stage of your home buying or selling experience.