Basically, closing time depends heavily on the bank and lawyers some are quick in getting closings other not so much. It also depends on the State the home buyer is purchasing in. Basically, here in NYC a contract would need to be done this week in order to close in time to claim the tax credit.

Question ,I have heard that there is going to be an extention of the tax credit until next year. Is this true?

Thanks for sharing your experience, Anthony.

Priscilla, there's a lot of discussion about whether to extend the credit, but that's still up in the air.

what if i am buying with 100% cash, i have a little less to worry about with time, right? I have been looking for three weeks and hope to make my second offer contract in the coming two weeks.

Hi, meggs -- since a lot of the stuff that typically happens between contract and closing is mortgage-related, I'm assuming that you should have less to worry about with an all-cash deal. Just make sure you can get the home inspection and any other necessary things done in time.

If you got the credit for First Time Home Buyers Credit in 2008 but the house did not work out for a principal residence and was converted to a rental can the 2008 credit be recaptured and a First Time Home Buyers Credit be applied on a new home purchased in 2009 that will be suited for a "principal residence"?

Hi, Gail. I'm guessing the answer is no, but you'll want a tax expert's take on that one. No doubt it depends in part on whether the home was ever used as a primary residence.

Question: I puschaced my house in may 2009 but did'nt put in for credit. Can I still get it?

Sure, Bronco Brown, assuming you qualify. As the IRS notes, "First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010."

I am buying a house with my boyfriend. Since we are not married, can we both get the full $8,000 credit?

Sorry, Gina -- one house, one credit. Here's some IRS guidance on how unmarried folks buying a house together can split the credit: http://www.irs.gov/pub/irs-drop/n-09-12.pdf

The PDF publication refers to the '08 version of the credit, but it gives you the general idea.

They should let this tax credit expire as soon as possible. This is artificially inflating real estate values. When the credits expire, prices will fall. Keeping these credits in place will only prolong the inevitable. The free market always rules. When the tax credit expires, be it this year or the next, and interest rates rise, the market will go down another 10% to 20%. Especially since foreclosures have continued to increase month over month and year over year. I know most people on here like to hear positive things, but realistically, home prices can't appreciate when unemployment continues to go up and more distressed properties go on the market every day. When you are looking for a home and you see a bunch in the same neighborhood, are you going to buy a home for 300k that is worth 300k? Or are you going to buy a home from the bank for $200k that is worth $300k? Also, you have to factor in the Bush tax credits that NO ONE talks about. Think about your take home pay going down even more. How are you going to afford the same payment when many homeowners are struggling now as it?

We've been trying to get in under the wire. We put in our first offer Aug. 28. It was rejected. Our fifth offer on the fifth different house was accepted Oct. 8. We had put Nov. 18 as the closing date on the contract, but Wells Fargo (who owns the house through foreclosure) changed it to Dec. 11, which means we'll miss the tax credit. We're trying to get everything done sooner and snag Uncle Obama's $8,000 gift.

One worrisome development -- the previous owner recently filed for bankruptcy, meaning we are in a "post-foreclosure bankruptcy situation." No one seems to know what it means, other than, "it could delay settlement 7-9 weeks." Any idea?

Oh dear -- sorry to hear that, Peter. I've heard from other buyers that a bankruptcy filing after they signed a contract really slowed things down for them.

Anyone have advice to offer?

Peter,
If I were you, I would either demand that Wells Fargo closes on the date specified in the contract, or go find another property so you can close in time to get the credit. There is a good chance the tax credit will be extended, but I would not count on it until something is passed.

I bought a house and closed in June, 2009. I bought the house from my grandfather. Can I still get the tax credit. It is my first home.

Bob, bad news -- the answer is no. Take a look at the form you'd have to fill out to get the credit: www.irs.gov/pub/irs-pdf/f5405.pdf

It says you can't claim the credit if you "acquired your home from a related person. A related person includes: a. Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren,
etc.)."

Wells Fargo has been less than accommodating. We'll try though, Frank.

The appraisal came back today, and the appraiser must have been having a bad day, because it's "subject to repairs" which include... a puddle of grease in the oven and mismatched wallpaper. She went a little overboard, and even the loan officer and both listing agent and my agent agree that the appraisal was excessive.

We've already sunk $1,000 into the appraisal and inspection, so I'm hoping we don't back out, especially because there's no way we'll get the tax credit if we try to put in a new contract somewhere now.

My husband and I are planning to buy a house. We sold our house last year, but it was only on my name -- both deed and mortgage. Does he qualify for the first time buyer credit?

I don't think so, Mel. Here's what the IRS said to a similar question posed by a reader of the Sun's Consuming Interests blog:

"If an individual is married on the date of purchase, the individual’s spouse must also be a first-time homebuyer for the individual to be eligible for the credit. This requirement must be met even if the spouses file married filing separate returns or only one spouse purchases the residence."

We purchased our home in 2008 and received the loan credit in 2008 so we have to pay it back yearly. Can we convert our 2008 loan to the 2009 tax credit. (It's my understanding for the 2009 credit that there is no payback.)

Sorry, Nikki -- if you didn't buy in 2009, you're not eligible for the more-generous '09 tax credit. As the IRS notes, "The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1."

Do I have to pay this Tax Credit Back?

My husband and I just purchased a home in June 2009. Previously we lived in a condo for the past seven years. It sounds like they are going to extend the tax credit to homeowners who have previously owned a home for the past 5 out of 8 years. Would we qualify for this new tax credit of $6500 that may be offered?

Teresa, I can't tell from the details about this tentative deal whether repeat buyers would be eligible only after passage or whether it would be retroactive. But it's probably too early to be squinting at the details -- a lot could change on the Senate floor or in the House.

Rick, buyers don't have to pay the '09 tax credit back, but they do have to pay back the '08 version over a 15-year period.

I just called Johnny Isakson's office and was told by one of his aides the $6,500 credit was not retroactive. It would be for purchases after December 1st 2009 through the April/June deadline.

That freak'n sucks considering I'm closing tomorrow.

Thanks for passing that along, Sean. Sorry it won't work out for you.

If you inherit a home from a parent and you want to buy a new home later are you a first time home buyer even if you have the inherited property in your name?

I had a home in my name, but my folks paid the morgage and eveything else, i didn't live in it for over a year because it was on the market and it took so long to sell. I bought a house in july of 2009 and want to know if someone else made the payments on my old house, and i moved out may 2006. It took close to a year for it to sell, so it was over 3 years since that house was my primary residence, and my father made all the payments, but the title we were both on the morgage. Is there some sort of exception for not living in the house and waiting for it to sell? or if i was not the one who made the payments. Can i still get the credit?

I don't know, Perry. I think the key is whether your name is on the deed, not who was paying the mortgage, but I suppose it's possible that you could qualify because it stopped being your primary residence. You'll need to ask the IRS or a tax expert.

The tax credit was a huge factor in me purchasing a home, However its been 13 weeks and no return. Seems the government can't run anything right. From thousands of fraud cases from 4 year old's to IRS agents filing fraud cases. It only hurts the honest people trying to make it in these challenging times. Even real Estate people selling forms for $75.00 to crooks to fraud the government. How difficult is it?? They were sending out payments before even checking out the claims. Now i have to suffer. pathetic.

My daughter purshased a home in July 2009..she is a first time home owner..she had all the paper work completed by a accountant ...My daughter has not receive anything regarding her tax credit. Do you know what the approx. waiting time is? She did everthing by the book...Who could she contact to find out why the delay or if she was missing something they needed?.. Thanks if you can help us with these questions

Karen and Bryce, I don't know how long it's taking now to get the check in the mail. I've heard that eight weeks is a rule of thumb, but I've also seen complaints from buyers to the effect that it's taking much, much longer. (All the attention paid to the fraud probably means each application is getting more scrutiny.)

You might try calling the IRS's hotline, 800-829-1040, to see if you need to send anything else.

My husband and I bought one of my parents' rental properties converted into a condo in October 2009. This has never been their primary residence. So simply because they owned it, we do not receive the tax credit?? This is mind boggling. Can you clarify if there is a difference between them owning and living in a house?

Emily, the IRS has said that buyers can't get the credit if they're buying a property from a close relative, including a parent. Details here: http://www.irs.gov/newsroom/article/0,,id=206291,00.html

The issue isn't whether the home was a primary residence for your parents, but (I assume) that such "non-arms-length" deals could be used to game the tax-credit system.

This is a FYI to the people wondering about the IRS' time line. I bought a house in June of 2009 and the IRS received all of my paperwork for the credit on July 6th. It is now Jan. 6th and I still don't have my $8k. The IRS took 6 months to mail me a letter stating they wanted more information to prove I live at my new house. I understand the IRS wanting to prove that people are first time homeowners but having to wait 6 months to get a letter is a little frustrating. And yes, I did call the IRS almost every week to check on its status. At least I'm not depending on the money, although it would be nice to have it. I feel bad for anyone that is depending on it and they have to wait forever.

I have the same thing as linn except I filed on may 28th 2009 for the tax credit and it is Jan 13 and I am still waiting to find out what is going on after sending in many documents.

To Michael. The IRS took over a month to update my file to show they received my extra documents. I now get to wait 60 to 90 days to get another letter from the IRS about either needing to send in more documents or getting the claim denied/approved. I guess waiting another three months won't kill me entirely.
To All: What if I don't receive any notification from the IRS by the time I complete my 2009 taxes? Can I apply for the credit again just to piss the IRS off and waste their time?