First time home buyers should buy now to qualify for federal tax credit

Time is running out for home buyers looking to purchase their first home and qualify for the $8,000 Federal tax credit. According to the National Association of Home Builders (NAHB) first time home buyers looking to purchase a new home in 2009 and take advantage of the $8,000 first time home buyer tax credit, should do so immediately in order to qualify. The Federal tax credit is contingent upon closing the home sale prior to the November 30th deadline. New home buyers must be aware with new construction homes, the tax credit deadline applies to the “purchase” or closing date, not the date the sales contract is signed. Taking into account the time the entire building process takes, prospective buyers looking to take advantage of this tax credit should plan on purchasing their new home no later than May 31st.

Buyers need to be aware of the lengthy “front-end” details that need to be determined before any building can begin. They must determine a location, community, builder, floor plan, options and obtain mortgage approval, all of which can eat up valuable time with the approaching November 30th deadline. With new homes, buyers choose the home site, floor plan and individual options that meet their needs and lifestyles. New homes also come with full warranties unlike re-sale homes that may need costly repairs and upgrades.

“There is no question that there are numerous benefits available now for the first time home buyers including interest rates hovering around a 30-year low and FHA limits of up to $346,250 in addition to the tax credit,” said Ken Peterson, Vice President of Sales and Marketing for Shea Homes. “Shea Homes wants to educate those individuals looking to purchase a new home so they are aware of the requirements and timing involved, in order to take advantage of the benefits available to them.”

Shea Homes has seen an upturn in home sales since the first of the year, with 94 spec homes and 74 new builds sold. The company has communities across the Valley including, Peoria, Litchfield Park, Goodyear, Buckeye, Phoenix, Chandler, Gilbert, Queen Creek and Maricopa.

For more information on Shea Homes, call 480-348-6000 or visit www.sheahomes.com.