Tax Credit To Help First-Time Homebuyers May Be Extended

By Dan Bewley, The News On 6

TULSA, OK -- A popular tax credit to help new homeowners may be extended to next spring. Congress is expected to vote this week on whether to expand the First-Time Homebuyers Credit.

Bonnie Childers, a first-time Tulsa homebuyer, is proud of her new home and thrilled she qualified for the $8,000 tax credit

"I started looking in March just so I would be sure to come in under the deadline," said Bonnie Childers.

But legislation in Washington, D.C. could change that December 1st deadline and extend it to April 30th. Plus, if you have owned your current home for at least five years and buy a new home, you could get up to a $6,500 tax credit. It also raises the eligible income limit to $225,000 a couple.

Realtors are hoping it will pass. They say the tax credit has been a boom to their business.

"It has increased and held our market more than it normally would be, granted we're off 9% or 10% this year over last year, but I think it would be considerably worse if it wasn't for the tax credit," said Paul Wheeler, Accent Realtors.

Wheeler says the First-Time Homebuyer Credit is working. Just last week, he helped three first-time homeowners purchase their first home and qualify for the credit.

Childers says the credit was a main reason she decided to buy this year. Now her dog has a new backyard and, if the credit is extended, Bonnie encourages other first-time homebuyers to jump at the opportunity.

"I was able to do it by myself and if I can do it, you can do it, and I would say that having that $8,000 not too far down the road is definitely an incentive and it's going to help ease the burden, ease the pain," said Bonnie Childers.