Buffalo, NY – August 24, 2009 – (RealEstateRama) — One of the few silver linings in the dark economic cloud that has been with us for the past year is the great incentive for first time homebuyers enacted by Congress. Since housing closings are actually recorded in the County Clerk’s Office, we are directly impacted by activity in the housing markets. That is why I am encouraging qualified buyers to start finalizing their purchase plans in the next few weeks. With the first-time home buyer tax credit set to expire November 30 of this year, buyers should be aware of how much time they actually have to take advantage of both the federal tax credit and the newly announced of the State tax credit enacted by the Legislature. I want to warn potential buyers who are still on the fence that the typical house closing in Erie County takes at least two months. This pushes the actual deadline for submitting an offer on a home to fairly soon to allow the appropriate time needed for the closing.
If you qualify, you may be eligible for two different tax credits—the Federal tax credit introduced under the American Recovery and Reinvestment Act for a possible $8,000, and Governor Paterson’s newly announced income-tax credit, referred to as the New York State Mortgage Credit Certificate (MCC). Both of these tax credits are aimed at improving home sales, a much needed shot in the arm to help stimulate the local economy.
The federal tax credit for up to $8,000 differs from the past tax incentives because it does not have to be repaid. The credit is available for homes closed after January 1, 2009 and before December 1, 2009.
More information on the federal tax credit, and whether you are eligible can be found at www.treas.gov/press/releases/tg39.htm.
Like the federal tax credit proposed under the Recovery act, the newly added New York State Mortgage Credit Certificate also holds a deadline of November 30, 2009. This income-tax credit will enable first-time home buyers to claim a tax credit equal to 20% of their annual mortgage interest costs, potentially saving the average homebuyer $1,500. With an MCC, the 20% of the mortgage interest that becomes a tax credit can be deducted from the homeowner’s federal income-tax claim. More information on this specific tax credit, and terms for eligibility can be found at www.ny.gov/governor/press/press_0810092.htm
For more specifics, be sure to talk to your local Realtor who is very knowledgeable about these options. If you have any questions on the house closing process, feel free to contact my office at 858-8865, or stop by the Clerk’s Office at 92 Franklin St. in downtown Buffalo.
If you can afford to make the plunge, now is the best time in years to get a great deal on a house, while taking advantage of this one-time financial incentive.
Hon. Kathy Hochul
92 Franklin Street, Buffalo, New York 14202
(716) 858-8865
Fax: (716) 858-6550
E-Mail: ErieCountyClerk (at) erie (dot) gov
