The Worker, Homeownership and Business Assistance Act of 2009 has extended the tax credit of up to $8000 for qualified first-time home buyers purchasing a principal residents. It also authorizes a tax credit up to $6500 for qualified repeat home buyers. Are you eligible? Are the qualifications as clear as mud? You can check the full requirements at http://www.federalhousingtaxcredit.com. Your tax advisor is also a great source for getting the scoop in plain speak.
Thanks to Colonial National Mortgage (Russell Dobbs, Sr. Loan Officer 972-989-9811) for putting together this brief synopsis of the differences between the qualifications:
$8,000 First-Time Home Buyer Tax Credit
*First-time buyers only, defined as someone who has NOT owned a primary residence in the last 3 years.
*The tax credit does not have to be repaid unless the home stops being the primary residence within 3 years.
*The tax credit is equal to 10% of the home's purchase price up to a maximum of $8000.
*The tax credit only applies to homes priced at $800,000 or less.
*The sale must occur between January 1, 2009 and April 30, 2010. However, if a binding contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
*For homes purchased before November 6, 2009 under the original program, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
*For homes purchased after November 6, 2009 under the new extended and expanded program, the income limit is $125,000 for single taxpayers and $225,000 for married couples filing jointly.
$6500 Move-Up / Repeat Home Buyer Tax Credit
*To be eligible, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
*The tax credit does not have to be repaid unless the home ceases to become the primary residence within three years.
*The tax credit is equal to 10% of the home's purchase price up to a maximum of $6500.
*The tax credit applies only to homes priced at $800,000 or less.
*The credit is available to homes purchased after November 6, 2009 and before April 30, 2010. However, in cases where the binding contract is in place by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
*Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Have a blessed day!
Ronda
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