Home Tax Credit Deadline Approaches

If you want to take advantage of the Obama administration’s housing initiative that allows first-time homebuyers to receive a federal income tax credit of up to $8,000 upon purchasing a home, time is running out. While the initiative has certainly helped home sales across the country, homebuyers have until December 1 to close a sale to take advantage of the credit.

Image: Flickr

Any loan that closes before November 30th is still eligible for the credit, a fact that many homebuyers may or may not be aware of as they pursue the purchase of their first home. However, most loans take about thirty days to close, which means that homebuyers that want to get their loans in with enough time to close need to act fast.

Real-estate officials estimate that home sales have gone up by nearly 24 percent on the national scale, a significant increase for a market that has taken a severe hit because of the financial crisis. However, realtors have also expressed concerns that many potential homebuyers may not take advantage of the tax credit for concerns over future economic stability.