Home-buying incentives available, but time is short

(Salt Lake Tribune) Homebuyers along the Wasatch Front are racing to meet a deadline for purchasing incentives that expire on Nov. 30.

The larger of the two incentives is an $8,000 federal income tax credit geared toward first-time buyers of new or existing homes, although anyone who hasn't owned a home in the past three years is eligible. Utah also is offering a $4,000 grant for buyers of newly built homes. Both state and federal officials stress that there is no leeway on the deadlines for the incentives, which are aimed at boosting the sagging economy and real estate sector.

"You could be a day late and $8,000 short," said IRS spokesman Bill Brunson.

Salt Lake City Realtor DeAnna Dipo is telling prospective buyers who are interested in either incentive they probably are going to need to be under contract to buy a home no later than the end of October to allow for sufficient time for loan underwriting and to beat the Nov. 30 deadline to close.

"It's definitely getting people off the fence," said Ryan Kirkham, president of the Salt Lake Board of Realtors. "There's no question that it's having a positive effect on home sales right now."

Further motivating buyers are super-low mortgage rates of about 5 percent or even below 5 percent.

"A lot of people realize that rates aren't always going to be this low," Kirkham said.

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