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Buying a Home in Massachusetts in Time to Get the Tax Credit

By
Real Estate Agent with The Buyers' Counsel

House on moneyNow that the Home Buyer Tax Credit has been extended and expanded to help all home buyers, there's still plenty of time to take advantage of this opportunity.  

On November 6, the Worker, Homeownership, and Business Assistance Act of 2009 established a tax credit of up to $6,500 for all qualified move-up buyers.  If you currently own a home may be eligible for the credit. 

Previously, only available to first-time home buyers, the new expanded program was designed to boost home sales, particularly during the customarily slow winter months.

 

Requirements for the Move-up Tax Credit  

  • You must have owned and resided in the same house for at least five consecutive years prior to your purchase date.
  • The price of the home you are buying cannot exceed $800,000.
  • The income limits are: $125,000 for a single person and $225,000 for a married couple.
  • The home that you are buying must be intended as your principal residence and would include single family homes, townhouses and condominiums, mobile homes and houseboats.
  • You may not purchase the home from family members, including your spouse or spouse's family.
  • The credit applies to the purchase of an existing home as well as new construction.
  • If you buy a home in 2009 (or 2010) you can apply the tax credit against your 2008 (or 2009) tax return.
  • You must have a valid and executed Purchase and Sale Agreement by April 30, 2010 and the purchase must close by June 30. 

Best Not to Procrastinate 

In order to meet these deadlines you should be shopping for a house now.  It usually takes at least two months from signing an offer to get your home to a closing.  Getting an early start on the home search process will give you a much better chance at finding the right home in time.  

Have Your Pre-Approval in Hand  

To avoid wasting precious time, communicate with your lender as soon as possible and get all necessary documentation in to approve your loan.  Have the lender generate a pre-approval for you so that you are in a position to put a serious offer down on a home. 

It is important to note, if you are a first-time home buyer, the tax credit available to you will be up to $8,000 rather than $6,500.   

Copyright 2009 - Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230

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Posted by

 

Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I think we all know that now that the tax credit has been expanded and extended, people will get into the Thanksgiving and Christmas spirit, perhaps too much, and then spend January, February, and March paying off the Christmas bills before they realize that they now need to buy a house before April 30 to take advantage of the tax credit. There's nothing like procrastination.

Nov 22, 2009 10:01 AM
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Yes, Jim.  I think everyone does now know about the tax credit expansion but I wanted to expand a bit about the move-up portion of the bill for my readers. 

You may be right about the procrastination, but I hope that is not the case.  Happy Thanksgiving and thanks so much for your comment.

 

Nov 23, 2009 08:12 AM