The First-Time Homebuyer Tax Credit, made available through the American Recovery and Reinvestment Act, is coming close to expiring. In order to take advantage of the $8,000 tax credit, you must close on a house on or before November 30, 2009.
This tax credit is available to "first time home buyers" (anyone who has not owned a home over the past 3 years). There are a few other stipulations to receiving this credit.
- The tax credit is 10% of the purchase price of the house, up to $8,000. Therefore, if you use this credit to purchase a $30,000 home, you will only receive a $3,000 credit.
- It must be your primary residence where you live more than 50% of the time and you will have to do so for three years or the government will take back the credit when you sell the home.
- To get the full credit, your modified adjusted gross income must be under $75,000 for singles and less than $150,000 for married joint filers.
If you are interested in taking advantage of this Federal Tax Credit, you must find a home and enter into contract before the end of September due to the time frame that it takes to get your offer accepted, completing inspections, and processing a loan. This process is now taking up to two months, depending on the lender you choose. Keep in mind that if you do not close the sale on the property on or before November 30th, you will not be eligible to receive this tax credit.
It's a great time to find that home you are looking for, and receive the great credit on your taxes next year! If you are ready to take advantage of this tax credit, give me a call. We'll find that perfect home for you!