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Income Restrictions on the $8,000 tax credit

By
Mortgage and Lending with Core Mortgage Financial

The maximum tax credit is $8,000 for either a single taxpayer or a married couple filing jointly. It is 10% of the purchase price. So in order to get the maximum credit, the purchase price must be $80,000 or more.

  This tax credit for first time home buyers is not paid back like the first one of $7,500.

  There are income restrictions which can range from $150,000 to $170,000 for a joint return or from $75,000 to $95,000 for a single return. There are other factors involved when determining the actual income restrictions.

   This $8,000.00 tax credit can't be used if you are buying a home from a close relative, which is to include a spouse, a grandparent, child, or even a grandchild.

   You can only use this tax credit for your primary home, not for a second home or an investment property.

   If you sell your home within 3 years of the purchase date, the entire credit is recaptured.

For more information, please visit:

 http://www.hud.gov/news/release.cfm?content=pr09-072.cfm

Posted by

CORE Mortgage Financial