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Northern Virginia Buyers-Do You Have $8000 Burning a Hole in Your Pocket?

By
Real Estate Agent with Integrity Real Estate Group

Northern VA Buyers-Do You have $8000 Burning a Hole in Your PocketIf you are a first time homebuyer then the answer could be YES.  Thanks to the latest round of initiatives by the government some first time homebuyers have a nice tax credit headed their way.

First let's not forget that there are some qualifications.  The biggest one is that you must qualify for a loan.  If you haven't already talked to a mortgage professional let me know and I'll give you the names of great local lenders to call.  Next let's review some of the details of new tax credit.

  1. 1.  Tax credit is good for home purchases between January 1 & December 31, 2009
  2. 2.  Income limits are $75,000 for single filers and $150,000 for married filers.
  3. 3.  Credit is equal to 10% of the value of the home up to $8,000
  4. 4.  If you file separate returns you can qualify for $4000 each
  5. 5.  Available on your primary home, not an investment property
  6. 6.  You can use the credit to reduce your income tax liability or qualify for a tax refund.  Always consult a tax professional to determine what is best for your tax situation.
  7. 7.  First Time Home Buyer is defined as buyer's who have not owned a principal residence for the past three years.
  8. 8.  If you own the home you purchase and it remains your principle residence for 3 years you will not have to repay the tax credit.

With home prices in our area lower than they have been in years, with low interest rates and many sellers willing to provide closing cost assistance this new tax credit can provide you an additional boost to the benefits you already receive from being a home owner.

If you are ready to explore the option of buying your first home then give the Cindy Jones team a call at 703-346-2213.  No hassle, no pressure just a chance to talk about your options in today's market and whether the new tax credit might be the last piece of the puzzle to get you into a new home.

Posted by

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

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Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



 

 

Comments(14)

Mike Mitchell
Kee Realty - Saint Clair Shores, MI
REALTOR (R)

Hi Cindy, I just posted on this for my area also. What a great benefit for first time buyers! Great job on you post.

Feb 19, 2009 08:44 AM
Steve Hoffacker
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor

Cindy,

Don't forget that they have to spend it first by qualifying for the purchase price and closing with the required down payment and prepaids - at the contract price - befre ever getting some or all of the $8000. It's actually not a great incentive. :)

Steve

Feb 19, 2009 08:47 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Mike-thanks for stopping by.  I'll check out your post too.

Feb 19, 2009 09:33 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Steve-I'm sorry you don't see the potential benefit for first time homebuyers.  In our area my deals include enough seller concessions to cover all of their closing costs, leaving them with the 3.5% required for FHA loans.  If they are using VA they don't need any downpayment.  Not everyone will qualify but it certainly can be assistance to some buyers on next years taxes.

Feb 19, 2009 09:36 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Steve, it's a GREAT incentive for some homebuyers.  My daughter settled on a home in June '08 and she's getting the $7500 tax credit/loan, and she'll use it to install a patio and landscape the yard this Spring.  That will provide income to some laborers who will be able to buy food, pay their rent or go to a movie.

Cindy, my post tomorrow on Focus on Crofton is about this, but it's not nearly as compact as this.  Great job!

Feb 19, 2009 11:32 AM
Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

Steve's right.  You have to be able to buy a home.  But, assuming that you can buy a home (i.e., get the mortgage) than the Eight Large will be a nice little bonus for doing it NOW.

Feb 19, 2009 11:46 AM
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

Not a great incentive?  Well I don't think we want people who can't afford a home or have good credit to buy anyway!  Thats how we got into this mess!!

Feb 19, 2009 12:00 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Margaret-I'm glad your daughter is going to be able to enjoy the benefits of the tax credits.  I'll look forward to reading your post.

Feb 19, 2009 02:21 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Ken-I think we are seeing a lot of first time homebuyers in our lower price ranges.  Yes they have to qualify and most of us figure that out on the first face to face meeting.

Feb 19, 2009 02:23 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

James-absolutely.  Right now the buyers are qualified and so we need to do everything can to get them the best deal.

Feb 19, 2009 02:24 PM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC

Cindy,
Not everything works for everybody but for those that qualify, it is wonderful!

Feb 20, 2009 11:49 PM
Anonymous
Rob

Cindy,

I am a first time home buyer and I have already qualified for a loan. I also am qualified for the tax return for first time home buyers, however in Virginia can you use this as the closing cost fee? I am having a issue trying to come up with the required 3.5% or whatever it is for closing cost. I wanted to roll it into the fees etc. Is this possible in the northern Va area?

Thank you

Mar 02, 2009 10:48 AM
#12
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Rob-unfortunately the government doesn't give you the $8000 up front.  If you buy a home in 2009 you can apply this credit when you file your taxes next year.   Most agents in today's market are able to help their buyers have closing costs covered by the seller.  It sounds as if you are trying to qualify for an FHA loan.  You may also want to see if you qualify for a VHDA loan which could give you 100% financing or if you qualify for VA financing you can also look at 100% financing.  If I can be of any further assistance please don't hesitate to contact me.

Mar 02, 2009 10:26 PM
Anonymous
Rob

Cindy,

        Thank you for the information. I actually found out this morning that I can use my 401k (Hardship withdrawal) which will pay for the closing costs etc, but if the other you suggested works out then I would not need to go that route.

Thanks again for your fast response.

Rob

Mar 03, 2009 01:46 AM
#14