8K Tax Credit Procrastination

The clock started ticking nearly 10 months ago on the First Time Home Buyer Tax Credit.  OK, so when I read about the incentive I read it and thought that this will benefit some, however with the recent credit crisis and job loss reports, I really didn’t feel this would be that great of a stimulus for the housing industry.  However, 8K of free money is 8K of free money, so what is everyone waiting for?

Living in the Dallas Real Estate market there are a lot of First Time Home Buyers.  Being a licensed Realtor I get calls daily from people wanting to know more about the First Time Home Buyer Tax Credit.  I usually shoot them over the following email address listed below, which spells out very effectively the Tax Credit and who qualifies. 

So, I will break it down real quick in plain English.

When does it expire?  You must close, let’s say that again, You must close (not write a contract) before December 1st, 2009.

Who qualifies for this Tax Credit?  First time home buyers or anyone that has not owned a property in the past 3 years.

Is there income levels?  Yes, single $75,000 and married couples $150,000.  You make more than that and the amount is reduced until a single person earning $95,000 and married couples making $170,000 get “Nothing”.  Remember I am not an accountant, so please seek specific advice for any tax issue’s you might have.

What kind of home can I buy?  Most Single Family homes, Condominiums, Town homes, Manufactured Homes, and Houseboats.  However, remember some government foreclosures have not be cleared for this Tax Credit.

There is much more information for very specific situations, like will everyone get 8K or can I buy the home for my children or parents, etc…  For additional information please read this LINK.

Now to the original point of this article.  Why is everyone procrastinating about free money.  As I stated earlier I have been hit hard in the past by people about the 8K Tax credit and the first thing I do is sent them to a couple of qualified loan officers.  80% of the time these great potential clients are coming back with bad credit.  So, is this program really helping everyone it could.  Well that is a question you will have to ask you local congressmen.

So, what about the 20% that are taking advantage of these loans?  My brokerage has been tracking the number of buyers that are looking for homes and 60% of them that have been looking for several months will be taking advantage of the 8K Tax Credit.  If my brokerage is running into this problem, might I say everyone is having this problem as well? 

I hate to say this, but everyone that has not taken advantage of this 8K Tax Credit will be calling a Realtor shortly.  This is called “procrastination”.  Yes, this will be one busy fall. 

To all my buyers or potential buyers looking in the Frisco Real Estate, Plano Real Estate, McKinney Real Estate, or Allen Real Estate markets…please call me now and let’s get this process going.  You don’t want to be just starting to look in a month and not have the time for the mortgage company to process you loan.

VIP Realty DFW assists both buyers and sellers in the Commercial and Residential Real Estate markets.  VIP Realty DFW is located in Frisco, Texas, however with Frisco’s great location to Dallas, Plano, and the whole DFW area, VIP Realty DFW has assisted Real Estate clients throughout the Dallas - Fort Worth area