First time buyers of Fairbanks, Alaska homes get up to an $8,000 Rebate!

The "American Recovery and Reinvestment Act of 2009" recently signed into law improves the Federal tax credit to first-time Fairbanks homebuyers.  This is a credit back to first time Fairbanks homebuyers or a credit against taxes currently owed to Uncle Sam.

How does this apply to Fairbanks homebuyers? To qualify for the tax credit...

• You have to be a first time home buyer; meaning the borrower(s) can not have owned a home at anytime in the last three years;

• Your income can't exceed $75,000 for a single borrower or $150,000 for a married couple;

• The purchase must be for a principle residence.  The credit doesn't apply to investment properties or second/vacation homes and;

• The purchase dates must fall between January 01, 2009 and December 1, 2009.

Unlike the previous homebuyer tax credit, this one isn't a loan and you aren't required to repay the money, unless you sell the home within the first three years.  This is a perfect solution for our military servicemembers.  Folks PCSing into Eielson Air Force Base or Fort Wainwright Army Post who are first time homebuyers can and should take advantage of this opportunity.

How it works:

Folks buying a home in Fairbanks or the surrounding communities will receive a income tax credit equal to 10% of the purchase price with a maximum tax credit of $8,000.   The average price of a single family home in Fairbanks is $242,000, meaning just about everyone will qualify for the maximum tax credit.

The $8,000 is a credit against your current tax obligations.  If you owe $10,000 in taxes, after the tax credit is applied, you'll owe $2,000.  Likewise if your tax bill is only $5,000 you can expect a $3,000 rebate.