Start house-hunting now to qualify for tax credit for first-time
home buyers

First-time homebuyers-those who have not owned a home for at
least three years-may be eligible for the $8,000 federal tax
credit, but the window of opportunity is closing rapidly.

To qualify for the credit, the buyer must close escrow by midnight
on Nov. 30, when the tax credit expires. Buyers hoping to take
advantage of this benefit are advised to start house-hunting
early, as the buying and lending processes takes time.

MAKING SENSE OF THE STORY FOR CONSUMERS

I really think that since finding the right house can take some time, so  I reaally believe that home buyers should start the process when they think they are able and ready to buy.  Buyers also should allow for more time in getting their mortgage loan since that process is taking about two weeks longer to process this year compared to last year.

The tax credit is equal to 10 percent of the purchase price, up
to $8,000, subject to income limits. Single taxpayers are
eligible if their modified adjusted gross income is $75,000 or
less, while married taxpayers filing jointly must have a
modified adjusted gross income of $150,000 or less.

In order to qualify, you must live in the property. Vacation homes and investment homes do not qualify. Houseboats do qualify as do manufactured homes.

The seller cannot be related to the buyer in any way.

Married people filing as such cannot claim the credit if either
spouse has owned a primary residence within the last three
years. However, unmarried joint purchasers may allocate the
credit in any way they see fit, as long as it does not exceed
the $8,000 maximum.

The government will allow those who finance their purchases with
a federally insured loan to apply their anticipated credit
immediately toward closing costs or as additional down payment,
rather than waiting until they file their 2009 taxes to receive
the refund.