Time Running Out To Cash In On First-Time Homebuyer Credit

By Dan Bewley & Terry Hood, The News On 6

TULSA, OK -- Friday is the last day to get $8,000 back on a new home.

The First-Time Homebuyer Credit is about to expire, but it's not too late to take advantage.

New home sales are jumping across the country. The Census Bureau reports new home sales rose 26% in March and credit the homebuyer tax credit as why.

"I guess we really hadn't thought about putting our roots down in Tulsa. But the $8,000 was enough to make us put our roots down," Mark Fritts, a Broken Arrow Resident, said.

Mark Fritts bought his first home in January. He says the tax credit was the only reason he decided to buy and plans to put the $8,000 to good use.

"Pay bills," he said.

The credit has two options: $8,000 for first-time homebuyers, defined as anyone who hasn't owned a home in the past three years, or a $6,500 credit for anyone who has owned the same home for the last five years and replaces it.

The deadline to have a contract in place is Friday and you must close by the end of June.

Realtors and mortgage brokers say the credit has helped business boom.

"Extremely. It's probably increased our purchase business by 65% to 70%," said Bill Sheikh, with ZFG Mortgage.

Bill Sheikh of ZFG Mortgage says even though there are only three days left, it's not too late to get a piece of the pie.

"Your only option at this point is see if there's any homes out there that you like," Sheikh said. "You still have time to get a house under contract it, it doesn't take long to get a house under contract.

Sheikh says he's happy to answer questions about the process and can be reached at (918) 459-6530.

Mark Fritts says the credit makes a big difference and encourages others to give it a try.

"There's quite a little bit of red tape it seemed we had to go through but yeah, it was worth it, definitely worth it," Fritts said.

Analysts say another reason to try and buy now is that mortgages rates, which the government has helped stay around 5%, are expected to rise to closer to 6% by the end of the year.

4/8/2010 Related Story: Tax Tip: 10 First-Time Homebuyer Credit Tax Tips