Just when we were thinking the government had no love for all of us long-time homeowners, they bust out a new $6,500 tax credit for move-up/repeat homebuyers! Unfortunately this credit doesn't get a full year with a gracious extension, but it is what it is....available for limited time only J. All homes purchased with this credit must be $800,000 or less, and under contract by April 30, 2010.
Now don't go thinking that "yeah, yeah, I'm going to buy me a cheapo foreclosure and get a full $6,500!!!" Hold them horses, this credit (as with the $8,000) only covers 10% of the homes purchase price up to $6,500. Still a fabulous deal, just not for the greedy! Lets all remember too, a tax "credit" is applied directly to taxes owed. So it is a help come tax time, but don't expect it to be take home money.
Here is the big question. "Do I qualify?" Well, maybe. Let's do a little dissection of what that entails.
.First off, Move-Up/Repeat/Second Time Homebuyer means in this case, that you have owned and lived in a home for 5 consecutive years out of the last 8 years of your life. Kind of tricky. See, unless you without a doubt have owned and lived in your home for the last 5 years, you are going to have some questions, which you will need to ask someone else, like your lender and tax advisors.
Secondly, the income limits were expanded giving the opportunity to a wider range of homeowners. The new ones max out at $150K for Single/Individuals, and $225K for Married/Couples. If you happen to be married and filing separately, you both still better meet the guidelines to qualify. Lots of strings attached in this area...again ask your tax advisors for this one.
Fortunately, homeowners will not have to sell or be out of a home to get their piece. The catch here is that they have to use the new home as a primary residence for 3 consecutive years or pay back the money! Ouch! Didn't see that in the fine print! Just kidding but yes, it's true. Here is a neat little quirk though. Multi-Unit homes up to 4 units are acceptable under the tax credit and you can (can meaning have to) live in one unit while renting the rest! Makin money back now! Good luck finding a nifty deal like that, they are hard to come by (but not impossible).
There you have it, the $6,500 tax credit pretty much defined for general reading. I hope this helps some of you, entices others, and all around explains the basics of it to all of you! If you're ready to get looking at options on the market...let us know! We are happy to help and here to get you what you want, for the best deal you can get it! If you still have questions or just want further explanation then call our team, they are available all day long till 10pm every day! Now that's service!
CALL THE BELCHER TEAM at 405-314-6327
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