The Housing Assistance Tax Act of 2008

“Who Qualifies?”

First-Time Homebuyers who purchase a home between April 9th, 2008 and July 1st, 2009 could be eligible for an I.R.S. tax credit of $7,500. Any taxpayer who has never owned a home as a principal residence (or within the last 3 years) For a single taxpayer with an adjusted gross income (AGI) of $75,000. If income is higher, the credit decreases and disappears altogether above $95,000. For married couples with an AGI of $150,000. If income is higher, the credit decreases and disappears altogether above $170,000

“When do I get my money?”

You get your money only after you claim the credit on either your 2008 or 2009 tax return, NOT when escrow closes on the home. However, you can speed up the process if you amend your taxes and still receive the credit this year!

“What’s the Catch?”

Although they call it a credit, it’s really an interest-free loan you must pay back over a 15 year period ($500 per year) and starts two years after you take the credit. You either get $500 less on your taxes or you owe $500 more in taxes. If you sell your home or rent it out before the 15 years, you will have to pay the balance remaining on the credit on the tax return for the year the house was sold.

Did you know you can still purchase with only 3.5% down payment and interest rates are still in the 5 percent range?