With the recent signing of the Stimulus Bill an $8000 tax credit was made available to First Time buyers who purchase a home between January 1st 2009 and December 1st 2009. This credit is only available this year so now is the time to start looking for that new home.
Before you get started here are the highlights of the tax credit.
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A first time buyer can be someone who has not owned a primary residence in the last 3 years. So, if you want to buy a house, say on March 1st, the last time you could have owned a home would have been the end of February 2006.
- Types of properties that can be purchased: Condos, Co-op, Townhouses and single family houses which you will be required to live in.
- Unlike last year's $7500 credit this will not have to be paid back.
- Like most things, there is an income qualification. A single person can make up to $75,000 or a married couple filing jointly $150,000 to get the entire $8000. A single person making over $75,000 -$95,000 and a married couple filing jointly making over $150,000- $170,000 would only get a percentage of the $8000 tax credit.
- This credit will be claimed on your tax return and any unused portion will be given back in the form of a refund.
- Keep in mind you will have to live in this home for at least three years. If it is sold earlier you will have to pay back the amount.
- Even if the home is financed with a state or bond fund you can still get the tax credit.
I can hardly think of a better time to buy a home if you have good credit and a down payment. The interest rates are at their lowest in years; home prices have also dropped. There is a large inventory with room for negotiation and to add to that an $8000 tax credit you don't have to pay back. So this is the year to make that move. Don't let December 2nd roll around leaving you with regrets.
If you would like assistance identifying that home that's right for you, please contact me. I enjoy helping people find their first home and will provide you with resources to make the process a memorable one.
Whether you are considering buying or selling contact Jennifer Fivelsdal- Associate Broker- Keller Williams Realty Team - 845-758-6842- jennifer@jfivehomes.com and www.jfivehomes.com
*** Updates
Free First Time Home Buyer seminar on July 11th 2009
First Time Buyers take a look at FHA
So start your home search here, Just click the button below.
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Jennifer, I really wish they had put this through without the income cap. In so many east coast cities, it's hard to afford a house on $75K.