November 30, 2009. That’s the date.
December 1, 2009, is too late.
"We think this year's tax credit will certainly have a much bigger impact because it is a true tax credit which is also refundable," says Lawrence Yun, chief economist for the National Association of Realtors. "For instance, if you owe $1,000 in taxes and qualify for the first-time homebuyers tax credit, you will receive a tax refund of $7,000."
If the buyer holds the home for three years or more, the money need not be repaid.
Procrastinators will have to jump to it. It takes 45 to 60 days to process a loan. Banks, mortgage companies, and title companies foresee a pile up toward the end of November. There are only so many people writing and processing loans, as well as closing and recording the loans.
That means that anyone who wants to take advantage of this outright tax credit should be under contract by September 1, 2009, at the latest.
Among other technicalities are that a buyer cannot have owned a home in the past three years. If one party in a married couple has owned a home in the past three years, they are not eligible.
There is also an income restriction. The credit phases out for individuals with an adjusted gross income of $75,000, or above and for married couples with a combined adjusted gross income of $150,000 or above.
Bottom line: If you qualify, act fast, or time will pass you by.