$8000 First time homebuyer's credit CAN be used towards closing costs!!

By
Real Estate Agent with RE/MAX Executives VA0225060364, MD638478

Hello blogosphere!

I previously reported (in haste I admit) that the $8000 credit could be used as downpayment- however, that went out the window almost as soon as it was announced.

It has been officially announced, however, and this time it stuck, that the credit can be used towards closing costs.

How does it work? Well, its basically a short-term loan with the tax credit used as collateral.

Its brilliant!

A buyer has to buy a property between Jan 1, 20098 and Dec 1, 2009.

That's right, DECEMBER 1ST, not 31st!!

The credit is 10% of the purchase price of the home, up to $80,000. So, for most buyers in our area, they would qualify for the max credit, since most properties are well above $80,000.

The credit applies to first-time homebuyers only - those who have not owned a home in three years or more. Also, both parties in a marriage must meet this test.

Individuals with an adjusted gross income of $75,000 or less OR couples with a joint AGI of $150,000 or less qualify for the full credit. The credit is phased out as income increases. An Individual AGI of $95,000 or more or $170,000 for couples puts you out of the running for the credit.

The tax credit does not have to be repaid, so long as the buyer stays in the property a minimum of three years.

Different government agencies, non-profits and FHA-approved mortgagees can provide these bridge loans secured by the anticipated tax credit.

So, if you've been putting it off- now is the time!

Posted by

  

Bookmark and Share //

Cathy Valdiviez Baumbusch, REALTOR. Licensed in VA, MD, and DC. 

Red Dress Realty at RE/MAX Executives

DIRECT: 202-630-2MOV 

8442 Old Keene Mill Rd., Springfield, VA, 22152

2704 Richmond Highway, Alexandria, VA 22301

Cathy has lived in the DC Metro area since 1996. She currently lives in West Springfield, VA. Licensed since 2001 and serves clients in Virginia, Maryland and the District of Columbia.

Cathy's service area includes Fairfax County, Alexandria, Arlington, Falls Church in Virginia and Prince George's, and Montgomery County in Maryland., and of course. 

Cathy has an excellent track record getting short sales approved and closed. Cathy can also facilitate buying and selling real estate anywhere in the world. 

Cathy is a VHDA Certified Trainer and she has taught classes on buying short sales, HUD homes, and foreclosures and social media marketing classes through Fairfax County Public Schools Adult and Continuing Education Program. 

Cathy is a retired Army Reserve Major and an accomplished singer with a rock band. She resides in Springfield, VA with her dog and cat.

 Facebook buttonLinkedintwitter

Comments (0)