Last Month for First Time Homebuyer Tax Credit

That's right. This is officially the last month for the first-time homebuyer tax credit. Although the state has extended it in the past, as far as we know as things stand today, the home buyer has to have entered into a written binding agreement (contract) by April 30, 2010.

The written binding contract however might need some clarification - this does not mean submitted an offer, since an offer is not a contract. Those of you who are looking actively for a home and intend to close on a house and use this tax credit should hurry. It's not necessary to panic of course but do keep in mind that if you are looking for a home in which a bank is involved on the seller's side either through a short sale or a bank sale that they will take time. So do your shopping and don't take too long and waste time. If you are not in contract by the end of this month, you could lose your intended tax credit. "In contract" means that you have an accepted contract in escrow with all signatures on all eight pages. Yes, then. Only then is it considered binding.

You must close escrow by June 30th to avail of this homebuyer credit which is 10% of the purchase price not to exceed $8,000. No repayment is required if the buyer owns and occupies the home for at least 36 months after purchase.