Local News

Time for homebuyer's tax credit running out

Posted March 31, 2010 3:50 p.m. EDT
Updated March 31, 2010 7:13 p.m. EDT

— The window is closing on a chance for first-time and not-so-new homebuyers to get a federal tax credit for purchasing a home.

Prospective homebuyers have until April 30 to enter into a housing contract and until June 30 to close on a home to receive the credit, which is generally equal to 10 percent of the home's purchase, up to a maximum of $8,000.

The Internal Revenue Service defines a first-time homebuyer as someone who has not owned a home in the three years prior to purchase.

Current homeowners who have used the house as their primary residence for five of the past eight years are also eligible for a credit up to $6,500.

Single taxpayers making less than $125,000 or married couples with a combined income of less than $225,000 are eligible.

"They just need to start looking," mortgage broker Amy Bonis said Wednesday. "Like, this weekend, they should start looking."

Real estate agents say the low prices and historically low interest rates make it a great time to buy.

Bonis says this is probably the last chance to get the tax credit.

"They've extended the first-time homebuyer credit twice, and I don't think they're going to extend it this time," she said.