Our team has been working diligently to provide you, our faithful readers, and our buyer clients with helpful information regarding the first time home buyer tax credit. Remember, it was extended from a few months ago and now expires at the end of April! (Note: Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.)
To give you an idea of a personal perspective and experience with this tax credit, we decided to interview one couple that used the first time home buyer tax credit in 2009 (thank you Scott and Melody for answering these important questions!):
Did you buy a home because of the tax credit?
SCOTT: We were already looking for a house when we learned about it. I think it helped seal our decision to go ahead a buy a home.
MELODY: Actually, I didn’t even know of the tax credit until after my husband and I decided to purchase our first home. It was a nice surprise! I took it as a sign that we were validated in our prayerful decision to buy our first home.
MELODY: Our realtor and loan advisor were extremely informative about providing information regarding the tax credit. I found the tax credit to be an amazing blessing because we practically depleted our savings in trying to provide a down payment. The tax credit allows us to have an emergency fund in this unstable, unpredictable economy.
Chris Rooker probably.
SCOTT: I don’t think the tax credit should be used as a way to get people to buy a house. Even though it is a lot of money, it is not enough to justify purchasing a house. However, for those already looking for a home, it is a nice incentive.
SCOTT: If you know you want a home now or very soon, go ahead and buy now to take advantage of it. If you don’t see buying a house in the near future, then pass on the tax credit.
Many more of our buyer clients used the tax credit as well. None of them used the money towards a down payment, but they did inform us that it was a breeze to apply the credit to their taxes this year!
If you have any questions about the first time home buyer tax credit, or are considering purchasing a home, contact us! We’re here and happy to help.