OK, so if you were one of those folks who, for the nearly two years that the new home buyer tax credit was in effect decided to put off looking for a new home, your chance is gone with the wind. You may still be able to get a new home loan at a really decent interest rate, but you can kiss that $8,000 tax credit goodbye.

What it was

One of the decisions that the government made in order to help the struggling housing market after the crash and subsequent economic disaster was to offer a tax credit to new home buyers. The credit was available to home buyers with a maximum income level that varied a little bit during the term of the program.

The program was designed to help folks who hadn’t owned a home in at least 3 years to buy one. Buyers could get a tax credit of 10 percent of the home’s purchase price, up to a maximum of $8,000. That means if you bought a home for $65,000, you could get $6,500 in tax credits. A home that had a price of $150,000 would give you $8,000 in tax credits.

The program added a tax credit for existing homeowners for a while, too. That credit was smaller, with a maximum of $6,500. Both programs ended at the end of April, 2010.

Did it work?

New home sales in March 2010 rose 27 percent, which was the highest level in nearly five decades. The annual rate of home sales was beyond even the most optimistic predictions. Home sales jumped in every region in the country.

Much of that has had to do with the tax credit. Economists believe the credit did its job, and the program was allowed to expire rather than being renewed.

You might still qualify

There are some exceptions to the expiration. If you’re serving in the Armed Forces or working for the U.S. Government outside of the U.S., you can claim the credit into 2011. For all groups, however, you have to meet the qualifications and enter into a contract by April 30, 2011. You need to close by June 30, 2011.

Experts don’t believe the program will be re-introduced anytime soon. Hopefully, this is good news and shows that perhaps the housing market is well on its way to making a full and complete recovery.

Photo via zaphodsotherhead