First-time home buyers hurries to avail tax credit

As the expiration of the $8,000 tax credit draws near, first-time home buyers are scrambling to qualify, this according to Las Vegas  Review-Journal.  

Dec. 1 of this year is the expiration of the Federal government’s $8,000 tax credit for first-time home buyers.

Although the expiry date is Dec. 1, to avail on this tax credit, transfer of title to the new homeowner must be recorded not later than Nov. 30.

It takes about 30-40 days, meanwhile, for a normal home sale to be completed, the news organization reported.    

The $8,000 tax credit can be availed by a home buyer  who has not owned a home in the past three years. This tax credit is authorized under the American Recovery and Reinvestment Act of 2009.

Las Vegas  Review-Journal reported that majority of the  first-time home buyers avail the Federal Housing Administration loans. These Federal Housing Administration loans comprised 28 percent of home sales in August, the news organization said.

The news organization added that of the total home sales in August, 23 percent were conventional loans, 5 percent were Veterans Affairs loans and  42 percent were cash transactions.
 
As the median price of  existing homes in Las Vegas is less than $135,000, an $8,000 tax credit is a big consideration for first-time home buyers, the news organization said.
And as the tax credit expiration date for first-time buyers draws nears, realtors associations have been lobbying to Congress for an extension period of the tax credit. Lobbyists are also pressing to increase the tax credit to $15,000 and expand the coverage of the tax credit, not only to first-time buyers, but also to all types of home buyers.