If you are an active duty service member coming back from abroad, there is no better feeling than to have a place to call home. And if you don’t have one yet, now is the time to start looking – if you buy a home within the next year, you can receive an $8,000 tax credit. Coupled with a loan backed by the  VA home loan gauranty program, this tax credit presents a great opportunity for veterans to save bundles when purchasing that first home.

To qualify, veterans have until April 30, 2011 to buy a home or enter into a binding contract, and all sales must be closed by June 30, 2011. These deadline dates, according to the Internal Revenue Service are specifically for military service members, intelligence community personnel, and foreign service employees. Military buyers must also have spent 90 days on active duty outside of the U.S. between January 1, 2009 and April 30, 2010 to qualify, unless medical issues did not allow for completion of time abroad.

Also, the tax credit is mainly for first-time homebuyers (buying their first primary residence within the last three years), as only they can receive the full $8,000 credit. And with VA mortgage foreclosures at a new two year low, military families who meet certain criteria can rest assured they will be able to find a home and stay in it. Long-time residents (have owned and lived in the same home for five consecutive years) can buy and still qualify for up to $6,500. Other basic restrictions include… 

• Home prices cannot exceed $800,000
• Single-filers’ income must be less than $125,000 to qualify for the full credit, and less than $145,000 to qualify for any credit
• Joint-filers’ income must be less than $225,000 to qualify for the full credit

If you qualify, start looking now so the deadline does not pass you by – there’s no reason not to save! 

James Kelley blogs on veteran’s issues and real estate across the United States at VA Benefit Blog . He also works for VAMC, proudly serving American military families as the nation’s premier VA lender.

Time to invest!

The time to buy real estate is now.

Low prices, tax incentives, great rates.

It’s the sweet spot in the real estate market. The perfect storm.

If you are in a position to buy now, there has never been a better time. Rates won’t stay so low, incentives will disappear and eventually the low prices will also fade away. When do you make your move?

First time or move up buyers and investors too (yes, you CAN get a positive cash flow)

Call me at 630-717-7386, or email to find out where you fit. It’s opportunity time!

It’s a big year for change!

My son proposed to Katherine (Kitty) last winter and it’s been a whirlwind of wedding plans for 2010. Exciting.. yes! And to add to the excitement they’ve decided to purchase a home.

They don’t want to miss out on that free money that the government is giving away to first time buyers. They feel that they can take that $8,000 and use it to their advantage next year. I heartily agree. My wife Lisa and I had a great time showing them homes and talking to them about real estate…  it wasn’t that long ago that Angus would roll his eyes when Mom and Dad drove by houses, now we share in the fun. They found a terrific house that fits all of their needs and will be closing next week.

As a dad in the business, they’ve followed all of my advice happily. (yikes!) It’s a bit nerve wracking because I want this to be a great experience for them… well, I want it to be a great experience for all of my clients..but.. he IS my son! It’s a fine balance between being helpful and being overbearing.

My team has really pulled through for me. Craig Howard the Home Auditor took his time and explained things well, Maureen Lein at Max Mortgage took the time to prepare them properly and Naperville Attorney Tom Alore has stayed on top of the details and made them feel great. I have to say that I really appreciate all of their efforts.

I’m really proud of Angus and Kitty, they set their minds to do something and took all of the steps necessary to make it happen.

Even better… the government is going to pay them $8,000 for it.