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Quick Facts about $ 8,000 Tax Credit to First Time Home Buyers

By Kristina Zack

Real Estate Agent with Keller Williams Realty

February 14, 2009 03:12 AM

Stimulus Bill

The final provisions of the bill include:

· Tax Credit

· Restoration of 2008 Mortgage Limits

1. Tax Credit

Below is the link to the tax credit provision. (page 24)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf

The 2008 tax credit provision has been amended as follows:

a. Tax credit is increased to $8,000
b. The income limits remain the same: ($75,000 for an individual; $150,000 for a couple).
c. First-time homebuyers and principal residences only.
d. Tax credit is available until December 1st (previously it expired on July 1st).
e. Waiver of recapture (i.e. no repayment requirement) for properties purchased in 2009 prior to December 1st
1. The provision is retroactive to purchases made on or after January 1, 2009.
2. Recapture section does apply to properties sold in first three years.
f. Waiver of prohibition on financing by mortgage revenue bonds is included

2. FHA & GSE Mortgage Limits

Below is the link to the mortgage limit provision (page 282)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf

The President will be signing this puppy on Monday. This was passed late last night at 11 pm.

Stay tuned! :)

Comments(17)

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Anonymous

Scott

I am closing on a house the 17th. I was told I could claim it on my 08' taxes in oreder to get the tax credit this year? Is there any truth to that? And if so, do I have to pay that back?

Feb 14, 2009 07:01 AM

Kristina Zack

Keller Williams Realty - Enfield, CT

Real Estate Specialist in Enfield

Yes, under the current tax credit of 7500.00 it is repayable, but the new tax credit is not repayable. You are better off claiming the new one if you meet the requirements. Check this website back frequently http://www.federalhousingtaxcredit.com/ for an update. Normally, it would explain in detail what your options are. Since you did not buy the house last year, you would have to claim it in next years taxes. The tax credit is 10% of the price of your home or up to 8,000.00

I hope this helps and I am not too confusing. Any more questions, shoot them over. :)

Feb 14, 2009 07:09 AM

This whole buying a house thing is kinda confusing!! Now this tax credit is just something to add to the confusion! The only reason I asked, was like I said I was told I could claim it as if I bought it last year on this years taxes so I could get the credit now! I just don't want to file my taxes and end up not getting the credit at all! I know I kinda just repeated my self but, just kinda stressing buying a house! I close on Tuesday and the underwriters haven't signed the mortgage yet... kinda worried, or is that normal for them to wait til the last minute in this economy right now?

Feb 14, 2009 08:43 AM

Have you gotten mortgage commitment yet? You should be clear to close if you are closing Tuesday. Have you been given the all go?

Feb 14, 2009 12:25 PM

Zane Coffin

Century-21 Homestar - Geneva, OH

(Geneva Ohio Real Estate Agent)

Thanks for the up date Kristina and the links....peace zane

Feb 14, 2009 10:43 PM

Everything was all clear mid week last week, then they called my employer, and learned I get laid off for seasonal work, and the underwriters had an issue with that. My mortgage broker said they are just tighten up, due to this economy! My mortgage broker said he expects them to sign Monday! It's just kinda nerve wrecking!!

Feb 15, 2009 02:08 AM

Stank

I think it's screwed up that someone taking the 7500 credit for the prior year has to pay it back when you don't have to if you take it in 2009. Seems to me that those who took in 2008 should be grandfathered. Talk about equal rights.

Feb 16, 2009 01:45 PM

I know, this is not equal at all. I wish it was for all buyers and count towards last years. Sucks

Feb 17, 2009 10:39 AM

Scott, how did everything turn out today?

Everything is signed! We just had to move the close to, Wednesday! Still confused on this whole tax credit! I'll just find out when I do my taxes! :)

Feb 17, 2009 11:32 AM

#10

If you need any more advice, do not hesitate to ask. Congrats!! :)

Feb 18, 2009 12:06 AM

chris

We own the trailer that we are living in right now and I am wondering if we still will qualify for the 8000.00. We bought the trailer from a family member and it is not on a permenent foundation. We had to get a personal loan for it as we only paid 4000.00 for it. There was no closing or paper work involved, they just signed the title over to us and we gave them a check. We start construction on our new home next week and are really counting on the credit. Any input would be great! thanks

Apr 15, 2009 01:29 AM

#12

Ray Jourdain

what if someone makes more that $75,000 but less than $100,000 and is single? Do they get something, or is their income too high?

May 14, 2009 10:53 AM

#13

robert

Is the 8,000 a tax credit or is it a check payable to the home buyer?

Nov 15, 2009 07:49 AM

#14

Lorna

Our house was suppose to close on Dec 2009 now it wont close until Jan 5th 2010 do we have to wait til 2011 for $8000 tax credit?

Dec 28, 2009 01:40 PM

#15

No, you can still file on your 2010 tax return. For more info please click on this link for the new updated tax credit info.

http://activerain.com/blogsview/1395727/the-8-000-first-time-home-buyer-tax-credit-6-500-homeowner-tax-credit-the-facts

Dec 28, 2009 02:00 PM

jeffery smith

I purchased A HOME IN APRIL 2009.... I have been in the home over one year now....I recieved the 8000 tax credit....but I am getting a divorce and how will that affect me selling the home

Jun 20, 2010 03:42 PM

#17

Quick Facts about $ 8,000 Tax Credit to First Time Home Buyers

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