Veterans’ program coming to an end soon

If you’re a veteran who served overseas in the past two years, you’re likely eligible for a $8,000 tax credit when purchasing a home.

But the clock is ticking on the Veteran’s Home Buyer Tax Credit program and time will soon run out if you don’t act quickly.

The tax credit program was extended for veterans who were overseas but it is about to go away soon.  Under the extension put into place late last year for veterans, a contract must be signed by April 30, but applicants have until June 30 to close the deal.  So if you are looking for a home you need to have your purchase contract signed soon.

If the military personal were overseas for 90 days or more from January 1, 2009 through June 30, 2010, then they are eligible for the tax credit provided they can find a home and get a purchase contract completed and have the loan closed by June 30, 2011.

Late last year, Congress extended the first-time home buyer credit five months for veterans. The maximum credit amount remains at $8,000 for a first-time home buyer.  In this case, a first-time buyer is considered as someone who has not owned a primary residence during the three years before to the date of purchase.

The special tax credit accompanies the VA loan for which servicemen and women are already eligible.  Unfortunately not very many servicemen and women are aware of it and miss out on the savings.

The optimal scenario is that someone could get in with 100 percent financing — no money down — get the seller to pay the cost, amend their tax returns from last year and get a check for $8,000.   That is the best-case scenario, although that may not work out with every applicant’s tax situation.  Also, buyers should check with their tax adviser or account to verify their eligibility.

The properties have to be owner occupied as investment properties are not allowed.