Union County NC Home Buyers—Homebuyer Tax Credit Extended and Expanded

Union County NC home buyers got new options for receiving the Homebuyer Tax Credit when President Obama signed an extension of the tax credit law on November 6, 2009.  The $8000 tax credit for first time home buyers was extended until April 30, 2010.  A new $6500 tax credit for repeat buyers who have lived in their current residence for five of the last eight years was added to the program.

What should Union County NC home buyers know about these programs?

• A first time home buyer is defined as someone who has not owned a home during the three years prior to the date of purchase.
• A repeat buyer is someone who buys a home after living in their current residence for at least five consecutive years in the past eight years.
• Income restrictions have been raised to $125,00 for single tax filers and $225,000 for joint filers.
• The amount of the tax credit is 10% of the cost of the home up to $8000 for first time home buyers and up to $6500 for repeat buyers.
• The tax credit is for principal residences only, including single family detached homes, condominiums, and townhomes.
• The tax credit applies to homes under contract by April 30, 2010 and must be closed by June 30, 2010.
• The tax credit does not have to be paid back unless the home is sold within three years.
• Home buyers can claim the credit on their federal income tax returns filed for the year they purchase their home.  If the credit exceeds the tax bill, the government will issue a payment.  Taxpayers purchasing a home in 2009 can amend their 2008 tax return for an immediate refund.

What should be the first step in the process for Union County NC home buyers who want to participate in these programs?

• First time home buyers should contact a real estate broker and a mortgage loan officer for home purchase prequalification.  Learn more about buying your first home here.
• Repeat home buyers will want to contact a real estate broker to determine the value of the current residence.  Click here to request a comparative market analysis of your home.

Copyright 2009.  Carol Fox.  Allen Tate Realtors.  *Union County NC Home Buyers—Home Buyer Tax Credit Extended and Expanded*