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Deadline Looms For Homebuyer's Tax Credit

Lawmakers Working To Expand Program

POSTED: Friday, September 18, 2009
UPDATED: 7:55 am CDT September 18, 2009

For Angela Guzman, the $8,000 federal tax credit for first-time homebuyers opened doors.

The young college graduate, along with her puppy, Parker, just moved into a new home on San Antonio's northeast side.

"It (the tax credit) really did prompt me," Guzman said. "A couple things really came in line for me. It was the tax credit and then the low interest rates."

If not for the tax break, she said she probably would not have bought a home just yet.

For others, time is running out.

To receive the credit, the homebuyer must close on the contract by Nov. 30.

San Antonio Realtor Lynn Knapik said house hunters should not wait until the last minute.

"It's usually about 30 days for a closing, and you've got to give a little extra in there just in case there are problems," she said. "So, really, people ought to be ready (to make an offer) in the next two weeks to be able to get a house under contract."

The tax credit was intended to boost the slumping national housing market. According to Knapik, it did, and in San Antonio's relatively stable housing market as well.

"Probably about 80 percent of my business this year has been because of the tax credit," Knapik said. "It has been first-time home buyers."

Although the current tax credit is set to expire, realtor and builder associations are pushing Congress to extend it. Currently, there is legislation in both the House and Senate that would expand the credit to as much as $15,000 for any home buyer.
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