Time is running out for Lucas and Wood County, Ohio residents to take advantage of the American Recovery and Reinvestment Act's $8,000 First -Time Home Buyer Credit.  To recap how this  works, the credit is equal to 10 percent of the purchase price of the home up to $8,000. The homebuyer must not have owned a home during the prior three years. The credit is refundable, which means the government gives the balance to buyers who meet the qualifications, even if their federal income tax liability is less.  But to receive this credit, homes must be closed on by November 31, 2009.  It generally takes 45-60 days to close on a home so now is the time to get busy and house hunt if you or someone you know might be eligible for this tax credit.

Will it be continued?  Probably not. There has been criticism in the media that this has been an unfair benefit to new buyers while sellers continue to see their home values eroded.  The intention has been to kick-start home sales again and it has helped to push us toward stabilizing the market.  The National Association of Realtors recently reported that home sales have increased in most of the nation in the 2nd quarter of 2009.  We're definitely seeing an uptick in sales in the area.

Pass this information on to anyone it may help.  I continue to be surprised at how many new buyers are not aware of this credit.

The state of Ohio just passed a budget with a new Grant for Grads program to help college graduates purchase homes with the intention of keeping these college grads and all their education and talent in the area.  Although not all the details are worked out, the Ohio Housing Finance Agency (OHFA) will administer the program. and be taking applications later in the Fall.   Applicants will receive a cash gift or grant of 3% of the home cost that can be used to cover closing costs or down payment.  The gift is forgiven if the buyer stays in the state for 5 years. The grants will be available to all Ohio grads earning a degree in a 2 year program to post-grad degrees although income limits may apply.

This program coupled with the 1st Time Home Buyer $8,000 Tax Credit are too good to miss for any young grads.  We're seeing many of the people who have used this 1st Time Buyer Tax Credit Program file an amended 2008 tax return and receive the $8,000 shortly after closing on their homes.  The 1st Time Home Buyer $8,000 Tax Credit program is only good until the last day of November this year.  Buyers must close on a home by that date.

All lenders either with banks or mortgage brokers will have information on the Grant for Grads program and be able to work with graduates to help them secure a loan and grant.  Let me know if you need a referral of an experienced lender.

I guess there is never a question of who exactly pays for these programs, but I like that both these programs help stabilize our Toledo area housing market and attempt to keep people in what I think is a wonderful area to live in.

• First time buyer really means no ownership interest in a house in the past 3 years.
• The tax credit does not have to be repaid, but you must live in the house for 3 years.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
• Single taxpayers with incomes up to $75,000 or married couples with incomes up to $150,000 qualify for the full tax credit.

Please link to http://www.federalhousingtaxcredit.com/ for more detailed information.