The $8,000 tax credit for first-time homebuyers is in its final days. Hundreds of thousands of Americans have taken advantage of this unique opportunity to achieve the dream of homeownership. But that dream is deferred for one special group. Armed Forces members serving outside the U.S. on extended duty will have another 12 months to capitalize on this significant purchasing program. Eligible military members have until April 30, 2011, to ink a contract and until June 30, 2011, to close. All other buyers have to hit those benchmarks this year, meaning most have just days to get under contract on a home purchase. To qualify, service members must have served abroad for 90 days between January 1, 2009 and April 30, 2010. The legislation also applies to the spouse of a qualified person. Individuals can’t have an annual income beyond $125,000; married couples that file taxes jointly can’t have an annual income greater than $225,000. In most cases, military member won’t have to worry about a provision that requires buyers to repay the tax credit if the house isn’t the owner’s primary residence for three consecutive years. Those who serve our country can also take another year to qualify for the $6,500 tax credit for existing homeowners. The homebuyer must have lived in the previous principle residence for five of the last eight years to be entitled to the credit. Otherwise, the income and filing requirements are the same. For both tax credit programs, the purchase price of the home cannot exceed $800,000. The deadline extension is a huge benefit to military buyers, who under VA mortgage guidelines can combine the tax credit with a loan guaranteed by the Department of Veterans Affairs. Created especially for the military community, VA loans require no down payment or private mortgage insurance. The combination creates an incredibly powerful purchasing tool for those who’ve dedicated their lives to serving our nation.

Guest post written by Jay Buerck.