Tax credit helps first-time homebuyers

LAFAYETTE, Ind. (WLFI) - Sarah Veatch is excited to move into her new home on Lafayette's east side.  She and her husband have rented an apartment for almost three years. Veatch says the government's First-Time Homebuyer Tax Credit of 2009 motivated them to buy.

"The $8,000 definitely helps a lot. We knew the ending was Dec. 1st...so we knew we had to get on it and it's convenient that our lease is up in July. So we thought now's the time," said Veatch.

Eric Seymour, Century 21 Broker, said many people are taking advantage of the tax credit, who otherwise would not be shopping for a home.

"I think we have seen a flurry of activity, especially in the last six weeks...which is a direct benefit from the $8,000 tax credit," said Seymour.

A Century 21 Real Estate Survey showed more than three-quarters of potential first-time homebuyers are more likely to buy a home in the next six months because of the $8,000 credit.

"We're young, I'm still in school, he's just barely got a year in for his first job, so we need the money," said Veatch.

They close on their new home early next month.  Seymour recommended talking to a tax advisor, lender, or real estate agent if you have questions about the Homebuyer Tax Credit.