FIRST TIME BUYERS NOW QUALIFY FOR UP TO AN $8000 TAX CREDIT
You may have heard the tax credit called a First Time Buyer Tax Credit. Like a lot of things you hear about the Stimulus Bill, this is only partially true. The definition of First Time Home Buyer is not just that, but also anyone who has not owned a principal residence in the last 3 years (for married couples, that means both). This allows a lot more people to use the credit.
There are many areas where an experienced Realtor can help consumers maximize the benefit. A good example is a couple planning to marry and buy a home. If one has owned a home in the last 3 years and the other has not, they could access the credit through the non-owning party buying prior to the marraige (with the fiance as co-borrower if needed) but they won't get the credit if they close on the purchase after the marraige. The difference is as much as $8000.
There are income limitations ($75,000 single filer/$150,000 joint filers) and then the credit phases out. Eligible property must be in the US, there is a specific definition of "Principle Residence" and there are other rules to be considered. Unlike the credit offered last year, this credit does not have to be repaid (with one exception, if the property is sold within 3 years).
The best site I have seen to explain the credit has been set up by the National Association of Home Builders. Access this site at: www.federalhousingtaxcredit.com
As always, we have the experience to help first time buyers and all buyers find the best value in a new home and provide them the complete support to make their purchase a satisfying life experience. Searches are easy at www.TeamBalatow.com