Home buyers rush as tax credit near close

WASHINGTON, Sept. 25 (UPI) -- An $8,000 tax credit for first-time U.S. home buyers is set to end Nov. 30, putting buyers close to the wire, given the time it takes to close on a house.

After making offers on six homes in the past two months, Robbie Pettit of Prince William County, Va., told The Washington Post, "I'm praying for an extension of this credit, praying."

Critics say the credit has been a $15 billion giveaway to people who would have bought a home, anyway, given how home prices have tumbled in the past two years, the Post reported Friday.

Several lawmakers have proposed extensions to the program. Sen. Johnny Isakson, R-Ga, a former real estate agent, has proposed a tax credit of $15,000 to any home buyer.

The National Association of Realtors said credit made difference between yes and no for 350,000 of the nearly 2 million homes buyers in 2009.

Moody's Economy.com analyst Mark Zandi said 375,000 home buyers by Nov. 30 will have bought homes due to the tax incentive.

"Everyone coming through the door is talking about this tax credit. They know exactly what it is and when it expires, and they're rushing," said Brad Cohen of Mason Dixon Funding in Rockville, Va.