First-Time Home Buyers Who Want New Construction, Tax Credit Must Act Now

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(News Source: National Association of Home Builders)

(WASHINGTON, DC) -- The National Association of Home Builders (NAHB) is urging first-time home buyers who want to build a new home and also take advantage of the $8,000 first-time home buyer tax credit to act immediately.

"We have received many inquiries from potential home buyers asking if a sales contract on a new home by the November 30 deadline will be sufficient to receive the first-time home buyer tax credit," said Joe Robson, chairman of the NAHB and a home builder from Tulsa, Oklahoma. "They have been surprised to find out that they must move into the new home before they are qualified."

Home buyers may qualify for the tax credit if they purchase the home on or after Jan. 1 but before Dec. 1, 2009.  In the case of new construction, the date the home buyer takes occupancy of the house is considered the purchase date, not when the sales contract is signed.

Mike Dishberger of Sandcastle Homes, Inc., in Houston, Texas, said that building a home from scratch can take anywhere from four to six months depending on the floor plan and location.

"Builders are ready and willing to work with potential home buyers to get them into the new home of their dreams, but time is running out to make those dreams a reality while also benefiting from the $8,000 tax credit."

"Buyers also need to keep in mind that it takes time on the front end to select a community, a builder, a floor plan and the options they want in the home before the first shovel hits the dirt," said Kevin Enyeart of Gale Home Builders in Kansas City, Mo.  "Often it can take up to a month to complete this process in order to ensure the customer is satisfied with the home they will be living in many years down the road."

It is important that home buyers understand the time requirements and get the process started with a home builder today if they want their new home completed in time to claim the tax credit.

In addition to the November 30 deadline, home buyers must also have not owned a home in the three years prior to the purchase and have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers or $170,000 for married filers in order to qualify for the tax credit.

More information on the first-time home buyer tax credit can be found at www.FederalHousingTaxCredit.com. To find a local home builder, consumers can contact their local home builders' association at www.nahb.org/findanhba. Resources are also available to help educate consumers on the home building process at www.nahb.org/forconsumers.

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