First-Time Homebuyer Tax Credit Deadline Approaches

by Gabe Bullard on April 28, 2010

by Gabe Bullard

The first-time homebuyer federal tax credit will expire Friday. Anyone who has not owned a home in the last three years must be in a binding contract by then and close the sale by the end of June to qualify.

The tax credit took effect last year with the passage of the federal stimulus legislation. Louisville Remax Advantage Associate Broker Paul Kiger says it’s driven home sales up in the last three quarters, and the new buyers are less likely to default on their mortgages.

“People that are buying now are the solid buyers,” he says. “There’s no creative financing method out there. They’re very responsible consumers. At the end of the day it’s the banks money and the bank wants to know everything about them.”

Kiger says the tax credit has affected the entire housing market, since customers who sell their homes often use the money to buy more expensive homes. Kiger says that trickle-up effect will likely keep home sales strong once the credit expires.

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