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.

Even with Tax Day 2011 more than nine months away, it’s not too soon for some military personnel to think about taking advantage of the homebuyer tax credit extension.
Though some non-military taxpayers already got the tax return, and others have until Sept. 30 to close a deal, qualified members of the Armed Forces, Foreign Service and intelligence community have longer deadlines if they served official extended duty.
To use the homebuyer tax credit, qualified members need to sign a binding sales contract by April 30, 2011. They’ll then have two months to close the deal. Military members who were overseas for at least 90 days between January 1, 2009 and April 30, 2010 are likely eligible for the extension.
Service members coming back to Keesler Air Force Base and NCBC Gulfport will get some great benefits if they can find a home in the local area. Besides proximity to the bases, homes here are close to the beautiful St. Louis and Biloxi Bays. Also, first-time homebuyers can earn $8,000 or 10 percent of the home’s price depending on which figure is lower. For a $150,000 starter home, the maximum return could be more than 5 percent of the purchase price.
Repeat buyers can get a maximum return of $6,500. As with any tax credit program, there are several eligibility requirements:
-Military members and their spouses cannot have owned a home in the last three years in order to be considered a first-time homebuyer.
-Married couples with an annual income of $250,000 and individuals with that of $125,000 are not eligible for the tax credit extension.
-The maximum purchase price of a home cannot exceed $800,000.
-For repeat buyers, all requirements are the same and they must have occupied their last home for five of the last eight years.
-The tax credit will not be recaptured if homebuyers have to sell or vacate their home within three years of purchase because of another stint overseas.
Active-duty military members have the additional option of using the tax credit in combination with a VA loan, which boasts myriad financial benefits. Since its creation in 1944, the VA loan program has helped more than 18 million men and women purchase a home.

There’s no better time than now for military personnel to decide on using the tax credit extension, even if filing for taxes is at the bottom of priority lists.

Guest Post By James Kelley:
James Kelley blogs on veteran’s issues and real estate in the United States at VA Benefit Blog .He also works for VA Mortgage Center, proudly serving American military families as the nation’s premier VA lender.