Since we are now in the middle of July, I thought it to be important to remind buyers who are considering the purchase of a house that time is running out to take advantage of the credit. If you are going to purchase a home and take advantage of the credit, settlement must occur before December 1, 2009. As a reminder, here are some of the additional eligibility requirements.

  • A first time home buyer is one that has not owned a residence within the last three years.
  • Primary residences include single family homes, condos and townhomes.
  • The $8000 maximum credit is determined by 10% of the purchase price up to $8000. So it is very easy to see that any home purchase over $80,000 would qualify.
  • Single and married buyers with incomes of up to $75,000 and $150,000 are eligible for the full credit. After those limits, there are pro-rations up to a certain dollar amount before the eligibility is no longer available.
  • None of the $8000 can be used for a down payment but can be used for closing costs to finalize purchase.
  • And most importantly, this credit does not have to be repaid.

I have been asked many times by buyers “is the credit going to be extended for 2010?” My answer is I do not know. There are many variables, most political, that will play into any determination whether there is an extension for 2010. But remember, any extension can be changed or modified and could have many unintended consequences for buyers in 2010.

Why is now a good time to consider a purchase? Home prices are beginning to firm somewhat in the Central Pennsylvania market, and by the end of 2009, I think there will be the beginnings of appreciation in the overall market, albeit a small appreciation. And secondly, mortgage interest rates are still extremely attractive, currently in the area of 5.25%, meaning that the principal and interest payment on $100,000 is $552.20 per month.

Finally, if you need any additional information, please contact me at or if you want an idea of what is available in the market right now, in any price range, please go to my web site and click on the search listings button and you can find the home you have been looking for. Make it a great day.!!