This info has been all-over the newspapers, but let's review it one more time. This is the new First Time Home Buyer Tax Credit. This is different than the Tax Credit from last summer that was disguised as an interest free loan. Tax credits are different than tax deductions also. Tax deductions reduce your taxable income. Tax credits are like dollars in your hand, they act as a dollar for dollar credit against any income tax you owe or are added to any tax refund you might be due. This is HUGE for first time home buyers and I wish this had been extended to all primary residence buyers.
1. Effective for all 1st time home buyers (haven't owned real estate in past 3 years) that purchase their primary residence between 01/01/09 and 11/30/09.
2. $8,000. or up to 10% of the sales price, whichever is less
3. Must be repaid only if home is sold in first three years of ownership
4. Phases out for singles earning more than $75,000 and couples earning more than $150,000.
5. No sales price restrictions
Purchasing a home today is like the biggest "No-Brainer" I've ever seen. And parents should be helping/pushing their children (age appropriate of course) to go be a homeowner. In 3-5 years, some people will look back and say... wow, our timing was perfect. Others will look back and say, wow, I wish I had purchased back then.
If you would like more information on this, call us at 717-431-9299.
Ken Pederson
Certified Mortgage Planner, CMPS
FAIRWAY Independent Mortgage Corp.
PA's Best Lender
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
Is this really a big deal, Here we have had that for 15 years. It is called the ship program, you get 10% of the sales price to use anyway you want down payment, repairs etc. If you live in the house for 5 year sit is forgive if you sell it before that then it is prorated. But no one is using it now because the market is completely flat.
Feb 19, 2009 12:04 PM
Anonymous
Hi Charles... personally, I think this is HUGE for the US and for first time home buyers. If marketed properly by those in the media, real estate, mortgage and related industries... we can all help the housing market. If you don't think it's a big deal, it won't be a big deal for you. And maybe if this has been available in your area for all home buyers, maybe it won't be. But across the US... yes. I can tell people how to buy a home for free, quite honestly with no gimmicks. For example: Family wants to buy a home for $100,000. and FHA requires only $3,500. from the buyer and the seller can pay all the costs if structured properly by your lender. The client borrows $3,500. from their parents in a 10 or 15 year note with payments used in qualifying. Client gets their tax credit and pays off the loan to their parents. They've just purchased a home with none of their own money and owe only a low interest rate, tax-deductible mortgage of which Uncle Sam pays 20% to 30% of for them too.
It's all in how it gets marketed.
Feb 19, 2009 12:20 PM
#2
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors
I wonder how many blogs there are about this subject, I bet someone here knows, LOL...
Feb 19, 2009 12:24 PM
Bond Street Mortgage NMLS #191351 - Paramus, NJ
Vice President NMLS #212830
I just heard they can buy now and take the credit for this years 08 tax filings. That could be a huge incentive if the word gets out.
Feb 24, 2009 03:57 AM
Rainmaker
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