HOMEBUYERS TAX CREDIT

There is a lot of confusion out there on the federal Homebuyers Tax Credit. This is probably because there are actually three of them:

1) The first one was actually a long term, interest free loan that had to be repaid over 15 years.

2) The second one raised the credit, and it did not have to be repaid (unfortunately, the government didn’t make this break retroactive for the home buyers a little earlier in the year).

3) The third extended the credit to all buyers of homes who could qualify. One of the best brief explanations I have found for these tax credits is at

www.abcnews.go.com/Business/wireStory?id=9604343

The puzzling question is why aren’t people now taking advantage of this credit in the numbers they should be? When ever can anyone remember a time in the past when prices were low, the interest rate was fantastic, and the government was giving you some money (tax credit) just for taking advantage of an obviously amazing opportunity. Someday, there will be lots of people giving themselves a quick kick for not taking advantage of this great chance.

Homebuyers who would like to take advantage of this great opportunity need to be under contract for their home by April 30th of this year.