Dear Renalda:

What you are referring to was not a subsidy but a tax credit. If you were able to purchase and close on a property as a first time buyer by November 30, 2009, you would have been able to file an amendment to your 2008 tax return or file it with your 2009 tax return next year and get $8,000.00 from our wonderful government. There are certain restrictions to this credit, as an example if your a single person you should not have an income more than $75,000 a year and a married couple should not have an income of more than $150,000 otherwise the credit may be less or nothing at all.

Right now they are trying to extend that credit but it remains to be seen if they will do so. If it does not get extended it would be virtually impossible to take advantage of the credit due to the fact that when you purchase a co-op you have to get into contract, then get your mortgage and then get co-op board approval. This usually takes 2-3 months. If you already have found a place, negotiated a deal, got yourself pre-qualified through a bank and have a co-op with a fast moving board, you may just make the deadline. It would also go faster if you were an all cash buyer and didn't have to wait for a mortgage.

I do want to point out that even if you do not get the $8,000 credit, it is still a great time to buy and there are many opportunities out there. Prices are very low relatively speaking and interest rates on mortgages are pretty much the lowest that they have ever been in the history of man. There are also lots of co-ops pit there to choose from. Things are seemingly starting to stabilize right now in our economy and the real estate market and who knows how long this time of opportunity will last.

If I can be of further assistance to you please let me know. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, inc.
Office: (718) 645-1665
Email: MitchellSFeldman@aol.com

Hi Renalda,

This is not a government subsidy, but a tax credit (meaning your taxes will be reduced by $8000 when you file for 2009). Please note, however, that the credit is limited by income (a single person earning over $95K, for example, is not eligible) and you must have closed on your purchase by November 30 of this year, which doesn't leave you much time -- your mortgage banker or broker should be able to provide you with all the details. Good luck!

Frequently Asked Questions About the Home Buyer Tax Credit

http://www.federalhousingtaxcredit.com/2009/faq.php