If you’ve been looking to a buy a home or are even just thinking about it, now might be the time to seriously consider buying that home, townhouse, or condominium. Why is that so? Well, two rather hefty home buyer tax credits offered by the federal government that I’ve talked about before are set to expire in the coming months, unless–of course–Congress decides to extend the credits. Here’s another look at these credits (and their deadlines)…

First-Time Home Buyer Tax Credit

Looking to own your first home? Then you stand to collect an $8,000 credit (or 10% of the sales price, whichever is less) on your federal tax return. The credit applies to homes that are purchased for $800,000 or less, and you won’t need to repay the credit if you live in the home for three or more years. To qualify you (or your spouse) cannot have owned a home in the last three years, and you must be at least 18 years old on the date of purchase. The full credit is available for married couples who file a joint return with a modified adjusted gross income of $150,000 or less, and for other taxpayers with a modified adjusted gross income of $75,000 or less. Lastly, to claim the credit, you must close escrow on the home by April 30, 2010.

Existing Homeowner Tax Credit

Already own a home, but looking for a new one? Well, there’s a tax credit for you too. Eligible existing home buyers have the chance at a $6,500 tax credit (or 10% of the sales price, whichever is less). To be eligible, you must have lived in your current home for five consecutive years out of the last eight, and you must purchase a new or existing home by April 30, 2010 (and you have until July 1, 2010 to close). Additionally, you won’t need to sell your current home to qualify for the credit. The maximum credit is available to married couples with incomes up to $225,000 and to individuals with incomes up to $125,000.

In Conclusion

This is a great, once-in-a-lifetime chance to purchase a new or existing home. If you have any questions about the credits or are ready to start looking, get in touch with me!