First-time Home Buyers Grabbing Houses and Tax Credit~

By Kevin Collison RISMEDIA, June 4, 2009-(MCT)-Generation Y is getting jazzed about a new $8,000 federal tax credit for first-time home buyers-jumping at the opportunity to move up and out of their rentals.

Abbey, bar manager at Avenue Bistro in Kansas City, and Barnett, a hospital administrative assistant, had been saving to buy a house the past couple of years but weren't quite there yet. Until Congress approved the expanded tax credit in February.

Now they're leaving their rented home in the city for their own place in Roeland Park.

"We were saving money and waiting for the right time, and that definitely helped give us a push," Abbey said. "We were able to buy a little bit earlier because of the government tax credit."

The tax credit was part of President Barack Obama's $787 billion American Recovery and Reinvestment Act. It's available to people buying their first home in 2009 as long as the purchase is completed by Dec. 1.

Because of the one- to two-month lag between a contract and a done deal, many home buyers are making offers on homes now.

As opposed to a $7,500 tax credit available in 2008, the latest incentive doesn't have to be repaid if the taxpayer remains in the home for at least three years.

At the national level, a report Tuesday said pending home sales in April were up 6.7% from March, the biggest monthly increase since October 2001, according to a seasonally adjusted index of sales contracts kept by the National Association of Realtors®.


"I have been working with several different First Time Homebuyer's who are taking advantage of the $8,000 Tax Credit. Being first time buyers, there are a lot of things to know when buying a house, and it is my job to educate my clients on everthing they need to know in order for them to have a good experience in moving into their dream home. If you know of anyone who is tired of renting and ready to take advantage of the $8,000 the government is giving away, contact me, and I will be happy to help them get into a home!"