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The 2009 First‐Time Homebuyer Tax CreditUsing the Credit - The Dream of Homeownershipa Reality

By
Real Estate Agent with REMAX Integrity - Kathleen Carney

The 2009 FirstTime Homebuyer Tax Credit

he Dream of Homeownershipa Reality

Q What is the amount of the new tax credit?

A Up to $8,000.

Q Who is eligible for the $8,000 tax credit?

A First-time homebuyers who closed (or will close) on homes

between January 1, 2009 and November 30, 2009.

Q What are the details of the new tax credit?

A The new tax incentive is an $8,000 refundable tax credit (or up

to 10% of the purchase price). This means that if your total tax

liability in the given year is less than $8,000 the IRS will send a

refund for the balance.

Q Do I have to pay back the credit?

A No. If you occupy your home for three years, you will not

have to pay back the credit.

Q Who qualifies for the credit?

A To qualify as a first-time homebuyer, the purchaser or his/her

spouse may not have owned a residence during the three years

prior to the purchase (settlement).

Q Who cannot take the credit?

A Purchasers with any of these circumstances cannot take the credit:

•Currently own a home or have owned a home within the last 3 years.

•Your single income exceeds $95,000 or joint income exceeds $170,000.

•You stop using your home as your main home

•You buy your house from a close relative. This includes your

spouse, parent, grandparent, child or grandchild.

Q Is the value of the Tax Credit the same for

everyone who qualifies?

A No. The maximum allowable credit for homebuyers is $8,000,

however the exact value for each qualified first-time homebuyer 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 joint filers with incomes up to $150,000 may receive the maximum

credit. However, single buyers who make between

$75,001-95,000 or joint filers who make between $150,000-

170,000 has their tax credit decrease as they reach these maximums.

Q What are the ways that qualified first-time

homebuyers can use the credit?

A There are three distinct ways that first-time homebuyers can

access and utilize the Tax Credit.

Standard Tax Credit. The credit can be claimed on your 2009

Tax Return.

Tax Credit Advance Loan Program. Available through the

Pennsylvania Housing Finance Agency (PHFA), borrowers purchasing

their first home using a Keystone Home Loan and Keystone

Home Loan PLUS can apply a portion of their tax credit towards

the purchase. Due to limited funding, it is only available on a firstcome,

first-serve basis.

Bridge-Loan Products. Available through FHA-approved lenders,

bridge-loan products are borrowed against the forthcoming

tax credit and can be used by qualified buyers to help cover closing

costs, buy down their interest rate, or put down more than the

minimum 3.5% down payment.

Q Who do I contact if I have questions about

the credit?

A  Call - RE/MAX Integrity - Carney Williams 610-459-2209

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