Here are some basics of the credit as reported by Diane Dilzell, NJAR
President in NJ Realtor Magazine this week:
* A person is considered a first-time buyer if he/she has not owned a
home in the three years prior to the date of the 2009 purchase.
* The home purchased must be used as a principle residence.
* The tax credit is equal to 10% of the purchase price up to a maximum
of $8,000.
* The full credit is only available to individuals with an adjusted
gross income of less than $75,000, or a married couple with incomes under
$150,000.
* For those filing individually whose adjusted gross income is $95,000
and those filing jointly whose adjusted income is $170,000, the tax credit
phases out.
* Buyers must live in the residence for three years or else they are
required to pay back the full amount of the credit.
As an added incentive, borrowers who obtain a mortgage through the New
Jersey Housing and Mortgage Finance Agency's Home Buyer Program can
participate in the Tax Credit Loan Program (TCLP). Through the TCLP, buyers
can get a loan of up to $5,000 that is secured by their anticipated federal
tax credit. They can use the extra money toward the down payment or closing
costs, not accrue any interest and pay it back once they get the credit from
the government.
If you're ready to speak to a REALTOR in NJ don't hesitate to contact us to
help you find a local agent-our services are always free...
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