Still time for buyers to claim $8,000 tax credit

It's getting down to the wire. First-time homebuyers must close before midnight Nov. 30 to qualify for the $8,000 federal tax credit, an incentive that has people scrambling to meet the deadline.

First-time buyers need to decide what home they will buy and allow enough time for the home-buying process to take place. Pulte Homes has spec homes at each of its communities, so buying one of these will speed up the process.

Lakewood Builders is one of many builders reporting improved sales as a result of the federal tax-credit incentive. "First-time buyers are still trying to get in under the deadline," Chris Shaxted said. "It's like Cash for Clunkers, only there's no need to turn anything in."

First-time homebuyers Danielle Prior and Adam Donohoe will cash in on the tax credit for the home they bought at Sunset Ridge Estates in Richmond. The couple selected the Truman, a two-story design with three bedrooms, 21/2 baths and a full basement.

Before they could say goodbye to renting though, they needed to find the right new home and community.

"We looked at single-family homes in Antioch, Lindenhurst and Lake Villa because we wanted to remain in this area to stay close to friends, family and our jobs," said Donohoe, 29, who works for a North suburban printing company.

"The problem was that the homes in the subdivisions we visited were all too expensive."

Then Donohoe remembered his older brother's experience having a new home built by KLM Builders a few years back, so he and his fiancé visited the builder at Sunset Ridge Estates, where the couple was amazed to find homes base priced from $189,900.

"We liked the quality of KLM's craftsmanship, their attention to detail, the scenic homesites and all the standard inclusions," said Prior, 28, an occupational therapist.

The couple's new home will be finished in early October - just in time for them to be settled in before their November wedding date.

"The year 2009 is shaping up to be one of the biggest of our lives," Prior said. "Not only are we walking down the aisle together, but we'll be walking into our first new home."

Any taxpaying U.S. citizen who has not owned a home during the past three years is eligible for the $8,000 tax credit. Only principal residences, new or resale, qualify. For more details, visit federalhousingtaxcredit.com.