Kyle and Angela Cortright are keeping their fingers crossed that bid No. 3 will win them a new home as well as an $8,000 tax credit.

The couple and their five children have been searching for a new home in the Fairfield school district since February when they learned of the $8,000 federal tax credit for first-time homebuyers. Although they’ve been happy with their rental home off Symmes Road, they’ve been yearning for a place they can truly call their own. The incentive helped jumpstart the process.

“We said it was about time we started putting money in something we own,” Angela said.

With a budget of $130,000, the Cortrights are focusing on bank-owned properties because they can get more house for their money. The first two they looked at were lovely: four bedrooms, two baths, nice backyards and a swimming pool.

But even after placing a bid the day after the homes came on the market, they found themselves in stiff competition. Both times they lost the home to a higher bidder, although they bid more than the list price.

“You cut out all the extras, the things that need to be fixed and the closing costs. You cut everything out and it is still not good enough right now,” Angela said.

The third house still meets their criteria, but it needs a new roof. Luckily, Kyle’s job as a landscaper and maintenance worker puts him in touch with a lot of contractors, so they were able to submit roof-repair estimates to the seller’s Realtor quickly. Their offer was accepted Friday, Sept. 11, but they still have hurdles ahead before closing and securing the tax credit.

Homebuyers are scrambling to find a property and close before Nov. 30, the day the $8,000 federal tax credit meant to stimulate home sales expires.

To qualify, buyers must not have owned a home for at least the last three years. The tax credit is worth 10 percent of the purchase price, with a maximum credit amount of $8,000. Only homes purchased on or after Jan. 1, 2009, and before Dec. 1, 2009, qualify for the tax credit.

It also is limited to individuals with adjusted gross incomes at or below $75,000 as a single person or $150,000 filing jointly.

The National Association of Realtors said on average, first-time buyers search 12 weeks to find a home, with closing taking up to an additional 60 days.

So there is no time for dawdling, said Bill Hobbs, president of the Middletown Board of Realtors and a Realtor with Coldwell Banker Oyer.

“Lenders are back-logged so they need to get pre-approved and get on the band wagon now and call a Realtor,” he said.

While Federal Housing Administration loans are popular with first-time buyers and lenders because they only require a minimum down payment of 3.5 percent and are federally insured, they can take longer to process, Hobbs said.

With major FHA lender Taylor, Bean & Whitaker Mortgage Corp.’s authority to issue loans suspended and the company filing for Chapter 11 bankruptcy, many mortgages have been left at a standstill.

Hobbs said a conventional loan, which usually requires a 5 percent down payment, may be quicker for some buyers. But with either loan, pre-approval is essential to getting the deal done in time.

Finding the right Realtor also is key to a quick sale.

“Find someone that has to make a living selling houses. A full-time Realtor is going to be able to work around your schedule, which is important,” he said.

One that is knowledgeable on the neighborhoods you are interested in is also important, Hobbs said.

Remember that your final budget should include your down payment as well as closing costs and a home inspector should already be selected, as Hobbs said these items can help make for a quicker closing.

The Cortrights, who went with an FHA loan, also suggest having your lender get underwriting approval so the loan can process quicker.

Have a yard sale now to rid yourself of clutter so you’ll have less to move.

“Even if you only make a few hundred dollars, that could pay for the inspection,” Angela said.

For now, the Cortrights are trying to remain positive, hoping they will close soon on their home while keeping their options open if they find themselves back on the hunt.

“Just have patience. God has a plan and you’ve just got to kind of take it day by day,” Angela said.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.