First Time Homebuyers: Here's Another Reason to Buy!!

Real Estate Agent with EXIT Realty Services- New Paltz, NY

  If you're considering buying your first home, here's another incentive for you.  This week, New York State introduced another tax credit for first time homebuyers.

  It's called the Mortgage Credit Certificate.  It allows home buyers to take a dollar-for-dollar federal income tax deduction of 20% of mortgage interest paid each year.  The remaining 80% of the mortgage interest would still be treated as an itemized tax deduction- as usual.

  Governor David Paterson says the average homeowner could save about $1,520 per year for the first 10 years of the mortgage.  This new tax credit would be on top of the federal tax credit of up to $8,000- which is due to expire at the end of November.

  A first time homebuyer is defined as one who has not owned a home during the last three years.  For the New York State Mortgage Credit Certificate, buyers must get a fixed rate mortgage with a partipating lender.  So far, Wells Fargo, Bank of America and M&T Bank have signed up and others are expected to take part.

  There are income and purchase price requirements, depending on where you live.  For Ulster County, the annual income limit for a household of up to two people is $83,640 and for a household of 3 or more, the limit is $97,580 and the purchase price must be below $354,970 for single family homes.  In Orange and Dutchess Counties, the income limit for a household of one or two people is $97,061 and for a household of 3 or more the limit is $111,620 and the house must be purchased for less than $387,740 for a single family.  Purchase prices can be higher for 2, 3 and 4 family homes.

  The program is expected to be available by the middle of September.  If you currently have an offer on a home, you can still apply for the credit.  If you don't have an offer on a house and would like to take advantage of each of these tax credits, give me a call today so we can get looking for your first home.  Time is running out to save with the federal tax credit of up to $8,000.

Barbara Carter and Becky Cook

Mother/Daughter Team Real Estate Two Together For You

ExiT Realty Services 10 Main Street Suite 424 New Paltz, NY 12561

Barbara (845) 505-3160 Becky (845) 853-4210 Office (845) 255-HOME

On the web:    e-mail:

Comments (3)

Paddy (Patricia) Pizappi
Better Homes and Gardens Rand Realty - Pine Bush, NY
Real Estate Associate Broker Hudson Valley NY

Great oportunities here.  I hope many can take advantage of this most recent addition to programs for First Time buyers.

Aug 17, 2009 12:24 AM
Brian W. Nichols
OWNER/Exit Realty Metro Dallas - Dallas, TX

This program I hope is extended for First Time Home buyers and expanded to all home buyers. This would be the real boost our economy needs for real recovery.

Sep 19, 2009 03:27 PM
Brian W. Nichols
OWNER/Exit Realty Metro Dallas - Dallas, TX
By Stephanie Armour, USA TODAY

Time is fast running out for first-time buyers hoping to get a tax credit of up to $8,000, and Realtors say they're seeing a marked upswing in interest as the deadline looms.

Real estate groups also are urging Congress to extend the credit beyond its current deadline and expand the tax credit to up to $15,000. Now, buyers must close on their purchase by Nov. 30 to be eligible for the credit.

Home builders and real estate organizations are concerned that letting the tax credit expire could knock the wind out of the current housing recovery. And failing to expand the credit could imperil efforts to get more move-up buyers into the market.

"Right now, the recovery is in the first stage and getting entry-level buyers in, but it's having no impact on the move-up buyer," says Richard Smith, CEO of Realogy, the parent company of Century 21, Coldwell Banker and others. "If we can expand the credit to go after that move-up buyer, we'll be home free."

The tax credit available to first-time home buyers is already linked with an uptick in sales. For the first time in five years, existing home sales have increased for four months in a row, according to an August report by the National Association of Realtors (NAR).
Sep 21, 2009 03:42 AM