What seemed to be far out on the horizon, namely November 29th, 2009, the day the federal tax credit program for first-time homebuyers expires, now looms close. When you consider the amount of time it takes to qualify for a loan, find a home, negotiate the contract, go through the inspection process and then close on the transaction - there is no time to waste!
The program allows for a tax credit of 10% of the purchase price of a home up to $80,000 for a maximum benefit of $8,000. Income guidelines allow individuals with a modified adjusted gross income of up to $75,000 per year to qualify for the full tax credit. It begins phasing out at $75,001 and is not available to those whose MAGI exceed $95,000. Couples whose MAGI is less than $150,000 get the full tax credit as well.
A first-time homebuyer is defined as any qualifying citizen or resident that has not owned a home as a primary residence in the last three years.
The credit does not have to be repaid unless the home is resold within 36 months. And, you may live in a state that allows consumers to take out a short-term loan to help cover closing costs and then repay the loan with the federal tax credit.
So - what are you waiting for? Interest rates are low, inventory is plentiful, home prices are favorable and the government wants to put money back in your pocket.
Call me and we'll talk houses.
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