HUD to Allow First Time Buyers to Use $8,000 Tax Credit

Real Estate Agent with Charles Rutenberg Realty of Illinois

FHA qualified buyers are first-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.  A "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the 3 years prior to the purchase.

Eligible properties are: Primary Residential Residences that are single-family homes, condos, townhomes, and co-ops.

The maximum allowable credit for home buyers is $8,000. Each home buyer's tax credit is determined by two factors:

  • The price of the home-the credit is equal to 10% of the purchase price of the home, up to $8,000.
  • The buyer's income-single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum tax credit.

This is a tax credit and the buyer does not need to repay it, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.  Buyers are required to fund the downpayment of 3.5% themselves before receiving the credit for the closing.

There is a phase out amount for buyers who earn $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. If your income-over $95,000 for singles and over $170,000 for couples, you are not eligible for the credit.

Talk to your mortgage lender today for more details!

Follow the Fox to Elgin Fox Valley Real Estate
Twitter @jkinzle

Posted by

Jennifer Kinzle
Charles Rutenberg Realty, e-Pro 


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
ActiveRain Community
Keller Williams 'Rainers
Out Of The Box!
Posts to Localism
Chicagoland and Northern Illinois Real Estate
first time buyers
tax credit
phase out

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Jennifer Kinzle

Top Rated Kane County Agent!
Ask me a question
Spam prevention