Time running out to take advantage of homebuyer tax credits – WAFF 48 News – Huntsville

Posted: Apr 11, 2010 8:44 PM CDT

Updated: Apr 12, 2010 5:33 AM CDT


By Trang Do – Bio | Email


HUNTSVILLE, AL (WAFF) – Thousands of realtors across the country held open houses this weekend.


It was part of an effort to encourage people to take advantage of two homebuyer tax credits that are set to expire at the end of the month.


Realtors say now is a great time to buy, not only because of these tax credits, but also because interest rates are pretty low right now, but won’t stay that way for long.


Buying a home is often the most expensive purchase a person will ever make — that’s why many people, like Renae Bishop, are scrambling to find their perfect home before some tax credits being offered by the federal government run out.


“There’s a lot of good things out there,” Bishop said. “It just depends on what you’re looking for. I have a certain type house in mind, and I think it’s going to be an opportunity too good to miss.”


Bishop is looking to take advantage of the up to $8,000 tax credit for first time homebuyers.


To qualify you must have not owned a home in the past three years.


Crye-Leike Realtor Lea Ellison said Huntsville has a lot of great options for first-timers, but that those in the market need to act quickly.


She spent Sunday showing a home in Southeast Huntsville that’s on the market for $143,000.


“What I would say to a first-time homebuyer is that it’s a wonderful time to buy,” Ellison said. “Sellers are willing to negotiate, most of them are very, very aware of the bloodbath that has happened in the market in the last couple of years.”


There’s also an tax credit of up to $6500 available for previous homeowners looking to upgrade or downsize.


The catch? You must have lived in your home for five consecutive years in the past eight years.


Both tax credits require that you have a contract on a home by April 30, and you have to close the deal and move in by June 30.


There are other stipulations.


For single buyers, you cannot make more than $125,000 a year.


Couples buying cannot bring in more than $225,000 a year.


The purchase price of the home you’re buying can’t be more than $800,000.