Archive for October, 2009

Extension of Housing Tax Credit

Tuesday, October 20th, 2009

I don’t think most people realize how important it is to extend the tax credit for home buyers.  Right now it is set to expire December 1, 2009.  What most buyers do not understand, if they have not purchased a home recently, is that you cannot buy a home in November and expect to go to closing ( a requirement of the credit) before December 1, 2009.  My daughter is now buying a home and has signed a contract and applied for a loan and it will be about a 45 day process from signing a contract to settlement. This is normally how long it takes to go from contract to closing.  Assuming the Tax Credit is extended it will allow for many of the buyers who maybe haven’t even found a home to buy to conitnue in their purchasing efforts.

Our company, Oliver Homes, Inc. builds new homes and you can imagine how hard it is to move the time table backward.  If it takes 4 months or more to build a new home you will need to to start construction within 120 days of the end of the tax credit or tax credit extension.  Moving that back further it may take a few weeks or so at a minimum to decide what type new home they would want so it is imperative to almost start now in looking at a new home to be constructed. 

As we move thru life it comes and goes too fast.  For one buying an existing home or new home the six month extension that is really necessary for the real estate industry it will come and go too quickly.  You need to start looking right now -not to take advantage of the current tax credit but to take advantage of the new extension of the next tax credit.  Then hope it gets approved.  Happy home buying!!