Money Matters: Time Running Out For Tax Credit
The first-time homebuyers’ $8,000 tax credit ends November 30. It can take about 90 days to close on a house after a contract is signed and since it’s already September 1, there’s only 90 days until the tax credit ends.
Melissa and Tom Timmerman bought their first home earlier this year, just when the tax credit was unveiled.
"We were pretty excited and hadn’t filed our taxes so we did that right away and were able to get $8,000 by late April or early May," Melissa Timmerman said.
The Timmermans turned around and used that money to put energy efficient windows in their older home, getting yet another tax break.
"Certain standards had to be met, so we purchased those and next time we do our taxes in 2010, we’ll be able to get 10 percent back on the amount we spent on the windows," Timmerman said.
Jen Helland helps potential buyers determine how much home they can afford through Consumer Credit Counseling. She says it’s not too late to make the tax credit work for you the way it has for the Timmermans.
"Be working on getting your documents in order. Be thinking about affordability; the area of town you’d like to buy, so you can be specific with your real estate agent and then get pre-approved. That’s the signal from a lender you’ve got the money ready and waiting and proceed from there," Helland said.
Helland says the tax credit can even be used in advance to get you into a home.
"It’s an option. So if folks are feeling like down payment or closing costs are prohibitive they can pursue using the tax credit for that purpose. That’s through South Dakota Housing," Helland said.
Timmerman plans to make sure her tax rebate keeps on working for her.
"Now we’re going to be taking that money and putting it toward shingles next year. It’s being returned to us and it’s really great. Otherwise we wouldn’t be able to afford to do a lot of that right now," Timmerman said.
You can find more information on the Federal Housing Tax Credit online.
Melissa and Tom Timmerman bought their first home earlier this year, just when the tax credit was unveiled.
"We were pretty excited and hadn’t filed our taxes so we did that right away and were able to get $8,000 by late April or early May," Melissa Timmerman said.
The Timmermans turned around and used that money to put energy efficient windows in their older home, getting yet another tax break.
"Certain standards had to be met, so we purchased those and next time we do our taxes in 2010, we’ll be able to get 10 percent back on the amount we spent on the windows," Timmerman said.
Jen Helland helps potential buyers determine how much home they can afford through Consumer Credit Counseling. She says it’s not too late to make the tax credit work for you the way it has for the Timmermans.
"Be working on getting your documents in order. Be thinking about affordability; the area of town you’d like to buy, so you can be specific with your real estate agent and then get pre-approved. That’s the signal from a lender you’ve got the money ready and waiting and proceed from there," Helland said.
Helland says the tax credit can even be used in advance to get you into a home.
"It’s an option. So if folks are feeling like down payment or closing costs are prohibitive they can pursue using the tax credit for that purpose. That’s through South Dakota Housing," Helland said.
Timmerman plans to make sure her tax rebate keeps on working for her.
"Now we’re going to be taking that money and putting it toward shingles next year. It’s being returned to us and it’s really great. Otherwise we wouldn’t be able to afford to do a lot of that right now," Timmerman said.
You can find more information on the Federal Housing Tax Credit online.
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