$8,000 First Time Buyer Tax Credit NOW ... YES YOU CAN ! ... here are the GUIDELINES of how my contact GOT IT LAST WEEK !

Following on from Missy Caulk's post highlighting HUDs announcement that First Time Buyer's can take advantage of the $8,000 tax credit - I wanted to share an experience from one of my contacts WHO ALREADY GOT THIS CREDIT AND USED IT TOWARDS HER DOWNPAYMENT AND CLOSED LAST WEEK !

I know there are some skeptics who questioned whether this advance on the credit would actually make its way to Main Street - well it ALREADY HAS !!

Now although this announcement was just made on the 12th by HUD Secretary, Shaun Donovan, this tax advance has actually been in place for many weeks now.

 

Here's an article from May 2nd, and I actually first heard about it in mid April, but wasnt sure how available it was at that time.

http://www.dailyherald.com/story/print/?id=289998

 

However, I just spoke with a contact of mine today, who closed on the purchase of her new home last week, and took advantage of this incentive towards her downpayment !

Here are the things she said you need to know:

This buyer had already filed her taxes earlier in the year - BUT this new loophole allows you to FILE FOR AN AMENDMENT of your 2008 TAXES so you can in fact get the $8,000 Tax Credit for THIS YEAR instead of having to wait until filing for your 2009 taxes.

To do this, here is what I was told you must provide:

• A copy of your Full Filed 2008 Tax Return
• The Address of the property you intend to purchase
• The projected closing date
• Completed Form 5405, First-Time Homebuyer Credit Form

Once your tax professional has submitted the above information for the credit, it is taking approximately 4 weeks to get the checks to the clients.

THIS FIRST TIME BUYER RECEIVED HER $8,000 CHECK AFTER 4 WEEKS, AND IN TIME FOR HER CLOSING LAST WEEK !!

Now, if there is a delay in the closing, it's OK, because as it was relayed to me, you have until November 30th to complete the closing - and use the credit.

BUT !!!!

IF THE PURCHASE DOES NOT GO THROUGH BY NOVEMBER 30TH, AND YOU HAVE RECEIVED THE CHECK ALREADY - OBVIOUSLY YOU HAVE TO RETURN THE CHECK IN ITS ENTIRETY !!!!!

ALSO !!!! ... apparently, these advances are likely to get many RANDOM AUDITS to make sure the advanced checks were issued to First Time Buyers who DID in fact complete their purchase within the guidelines !

SO ! ... if you, or someone you know is questioning whether this Announcement from HUD is valid ... then I suggest you call your tax professional and have them confirm it, because I know of one who has already taken advantage of it, and I am going to be giving this information to a number of my current First Time Buyers who are actively looking and ready to buy a new home right now !!!

And just to confirm, yes this is for the same $8,000 tax credit announced in the stimulus bill from earlier this year - which is a true tax CREDIT and not an interest-free loan !

Again, it is there for those who qualify, and unless they extend the program into next year, it expires later in this year.

Oh and the reason that my contact may have had a jump start on this 'advance' of the tax credit, is that she works for the Department of Finance for a neighboring county, and she got the news as soon as it was in play in our region and filed for it immediately !!!!

The good news seems to be that this is a REAL option (to get this $8K advanced to use for a downpayment NOW) - so check with your tax professional for your state and find out the guidelines, as I understand it,  each state has developed their own guidelines for the advance.

... my contact is one example of how this incentive is a real benefit for first time buyers right now - she got a free $8,000 just because she bought her first house this year !

... pretty cool in my eyes !!!

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Sheldon Neal is a Realtor(R) with RE/MAX REAL ESTATE LTD, in Oradell, NJ (Bergen County).

If you are interested in taking advantage of some great home prices and low mortgage rates - then contact Sheldon at 201-481-2891 or SheldonNeal@remax.net