Time is running out for first time homebuyers who want to take advantage of a federal tax credit.
For the past year and half, the federal government has granted an $8,000 tax credit to first time home buyers.
It was meant to stimulate the homebuilding and buying industry and analysts believe it may have made the difference for some potential home buyers.
"I think it's definitely been a motivation factor for the buyers in addition to - the interest rates have been very low in the past year so those two things combined probably have got some of the buyers who are sitting on the fence into the market,” said Wendy Pang of Central Pacific Homeloans.
Interest rates remain low, but there is a deadline to qualify for the first time homebuyer tax credit.
"The expiration date is December first, 2009 so that means that the property would need to record or close by November 30th, 2009. That means the clock is really ticking,” said Pang.
Here are several things you should know: you qualify as a first time homebuyer if you have not owned a home in the last three years - you must use the home as your primary residence for three years after you buy it - the home may be a condo, townhouse, or single family dwelling but it must be worth at least 80 thousand dollars. That should be easy. In any event, Pang says, see a loan officer first.
"The loan officer is not only going to give you information on the first time homebuyer tax credit but they'll also be able to tell you about other first time homebuyer loan programs that you'll be able to qualify for,” said Pang.
The loan officer can also help you pre-qualify for a loan.
"Pre-qualification is very important because it can, it will tell you how much your monthly payment will be, it will give you an idea of what properties you, what range in terms of home values you're able to look at,” said Pang.
Once again, the deadline for closing on a house and getting the tax credit is November 30th.
