The $8000 tax credit is coming to an end.
If you are thinking of buying a home and taking advantage of the $8000 tax credit, you will want to actively get into the process of searching for a home as soon as possible. You might not have as much time as you think – because the process of buying a home has been stretched out recently due to market conditions (here in Phoenix) as well as the time it takes to get approved for a mortgage due to new mortgage rules.
The $8000 tax credit program is scheduled for termination as of December 1, 2009 – and unless it gets extended for some reason, you must close on your new home prior to this date. If you are thinking to yourself “December is still a ways off…” consider this:
- Due to current market conditions, houses in the sub-$300k range are getting multiple offers – which means you may need to “bid” on multiple properties before “winning” one.
- It “normally” takes 30 days to get your financing arranged once you have a sales contract.
- According to the IRS, you must actually close on the home home for it to be considered occupied and qualified for the credit.
Is The 8000 Tax Credit Going To Be Extended?
That is my official prediction. And now that I have said that, I probably should tell you that I am wrong about these kinds of predictions more than I am right.
So don’t take my word for it, plan your financial life as if my prediction of the $8000 tax credit being extended is wrong and it will end forever after December 1. It is impossible to tell for sure whether or not it will be extended, but I can’t think of a bigger mistake than hoping that it gets extended, putting off buying your home until “next spring” and then finding out that the $8000 tax credit ended.