Who is Eligible for the First Time Home Buyer Tax Credit?

Online, February 18, 2010 (Newswire.com) - Home buyers that ratify an offer before April 30, 2010 may be eligible for a home buying tax credit. For first time home buyers up to an $8,000 tax credit is available for eligible first time home buyers. A first time home buyer is someone that has not owned a principle residence during the past 3 years

New current homeowners also may be eligible for up to a $6,500 tax credit. The "long time resident provision" allows for people that have lived in a principal residence for any 5 consecutive year period during the past 8 years to qualify for this tax credit

The amount of tax credit is based on income qualifications. Buyers must be under contract by April 30, 2010 and settle on the property by July 1, 2010.
With the April 30 deadline coming soon, a buyer interested in taking advantage of this benefit should consider starting the process today. The deadline is approaching much faster than many potential home buyers realize. With a little over two months, individuals interested in the tax credit should have already be monitoring the market.

As the April deadline gets closer, real estate agents say that we will see the current competition increase dramatically. The expected increase in active buyers is not only because of the credit. Traci Rochon with Keller Williams Realty and www.greetingsvirginia.com in Alexandria, VA says, "April is the start of the normal busy season as families prepare to move once school is out. Very often the buyer who submits the winning offer on a property has no interest in the tax credit or finding the best deal, only getting a home that matches their needs in the midst of so much competition. We are seeing more buyers. We expect for a greater increase in buyers to occur as the deadline gets closer. The truth is that the market never fully geared down."

The previous buildup of buyers leading up to the previous deadline never subsided due to the lack of inventory. In many areas there is a low inventory of homes available and buyers are struggling to compete.