Although civilian homebuyers may no longer be able to receive their government tax credits, military homebuyers still can. The first-time and repeat homebuyers tax credits have been extended for certain military members, but time to take advantage of the extension is running out. April 30th is the deadline!
Congress initially extended the homebuyers tax credit to veterans and active duty service members who served overseas for at least 90 days from January 1, 2009 and May 1, 2010. The tax credit extension was granted by Congress because of the program’s initial time constraints prohibited military members who were ordered to serve overseas from receiving the tax benefit.
Congress has once again extended the tax credit to military members; however, the deadline is rapidly approaching. In order to receive the tax credit under the one-year extension, military homebuyers must enter a binding sales contract before or on April 30, 2011 and close on their home by June 30, 2011.
To have eligibility for the tax credit extension, military members must have served on “official extended duty.” “Official extended duty” is defined as 90 days of overseas service occurring between December 31, 2008 and May 1, 2010. If a military member could not complete 90 days of overseas service because of medical reasons, he or she may also be eligible for the one-year tax credit extension. Military homebuyers tax credit applicants must also be “a qualified service member” to be eligible which means they must be a member of the U.S. armed forces, foreign service , or of the intelligence community.
Finally, for veterans and active duty service members wanting to take advantage of the tax credit extension, they should consider financing their home purchase with a VA home loan. This type of loan is a VA-insured benefit that affords service members the opportunity to achieve affordable and easily accessible financing for their home purchase, and can be secured relatively easily and quickly. Also, when used in conjunction with a first-time or repeat homebuyers tax credit, a VA home loan can save a borrower thousands over the life of their loan.
If you qualify and have not yet found a home – contact Damion Flynn or search MLS right here on this site.
