South Bend, IN—Today, Congressman Joe Donnelly visited a house that was recently bought by first-time home buyers, Chuck and Sarah Lamphier, to remind people that the $8,000 tax credit available to first-time home buyers is set to expire on November 30. Donnelly is working with his colleagues in Congress to extend this tax credit, which was made available as part of The American Recovery and Reinvestment Act.
“The $8,000 tax credit provides the perfect incentive for folks who are considering purchasing their first home,” Donnelly said. “As we continue to weather this difficult economic climate, providing these types of incentives will not only stimulate the housing market, but also allow first-time home buyers to achieve the American dream of owning a home. I hope to see this tax credit extended so we can continue to give a boost to the housing market.”
The American Recovery and Reinvestment Act increased the tax credit from $7,500 to $8,000 and removed the repayment requirement for first-time home buyers who purchase a house between January 1, 2009 and November 30, 2009. (The credit in effect in 2008 required that the tax credit be repaid over a 15-year period, effectively turning it into an interest-free loan.) The National Association of Realtors has said that 1.4 million first-time home buyers have taken advantage of the tax credit so far this year and about 350,000 of them have specifically cited the tax credit as the reason they decided to purchase their new home.
“The tax credit absolutely helped in our decision to purchase our first home,” said Chuck Lamphier, who, along with his wife, Sarah, joined Donnelly inside of their new home. “The extra money allowed us to put more of a down payment on the home and, as a result, we were able to invest more in the house to make it more of a home.”
In order to receive the first-time home buyer’s tax credit, the house must be closed on by November 30. Real-estate professionals recommend that buyers be in contract for a house 30 days to 45 days before the deadline if they hope to close by the deadline.
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