First Time Home Buyers- The Clock is Ticking!

Ahhh, to be a First-Time home buyer at this time...

Low housing prices, low interest rates, lots of inventory to choose from, AND up to an $8,000 Tax Credit!  I must say, I envy you!  I have heard some confusion on the topic, so I wanted to clarify a few things.  Here are the basics:

• The credit is available on home purchases made between January 1, 2009 to before December 1, 2009.  This means that you need to CLOSE on a property by November 30, 2009.  I would recommend that you have a contract on a property by the first week of October at the latest to be sure that it closes on time. 
• The credit is 10% of the purchase price, up to a maximum of $8,000.  So if you purchase a $200,000 home, you are eligible for a tax credit of $8,000.  If you purchase a $70,000 property, you are eligible for a tax credit of $7,000.
• You claim the credit on your annual tax returns.  So for example, if are to receive $600 back on your tax returns you will receive $8,600 back (assuming you are eligible for the full credit).  If you owe $600 in taxes then you will receive $7,400 back (assuming you are eligible for the full credit).
• Only First-time home buyers are eligible.  A first time home buyer is defined as someone who has not owned a property in the last 3 years.  If you are married, you both must meet that requirement.
• Has to be a principal residence.
• There are income restrictions.  For the full tax credit, you must make under $75,000 ($150,000 if filing jointly).  After that, the credit is phased out.  If you income is over $95,000 ($170,000 if filing jointly), you are not eligible.
• The credit DOES NOT have to be repaid IF you stay in the home for three years.  If you move before the three years is up, you have to pay the entire amount back.  But, if you stay in your home for at least three years, you do not!

It IS a GREAT time to be a First-Time Homebuyer!  Don't pass up this opportunity.  The first step is to speak with a mortgage person.  They can help you determine what exactly you are approved for.  Then you can start looking at properties.  To search for all available listings including the photos of those listings, go to: www.SuburbanHomeTeam.com.