What is the Tax Credit? Has the Tax Credit Really Made A Difference in Poughkeepsie, NY?

What is the Tax Credit? Has the Tax Credit Really Made A Difference in Poughkeepsie, NY?

I can tell you that I have a buyer here in Poughkeepsie who would not be in contract if it weren't for the tax credit.  It's not that they wouldn't afford the house without the credit, thus propagating the problem of owning a home you can't afford.  It is an incentive.  It motivated them to move forward in purchasing a home.  

I do see the credit as a plan to stimulate the economy and since I am in the trenches, I see the benefits.

What are the two tax credits for Nov. 7 to April 30th?

In short, according to NAR's website, these tax credits apply to Primary Residences and the amount of the credit is determined by income and cost of house.

1.  The First-Time Home Buyer's may qualify for the Tax Credit of up to $8,000 from Nov. 7 until April 30, 2010.

• Must not have owned a home in the last three years prior to purchase.
• Single buyers can have incomes up to $125,00 per year.
• Married couples can have incomes up to $225,000 per year.

2.  Existing home owners may qualify for the credit up to $6,500 when purchasing between Nov. 7, 2009 and April 30, 2010. 

• They must have used the home being sold or vacated as a principle residence for five consecutive years within the last eight. 
•          Single buyers can have incomes up to $125,00 per year.
•          Married couples can have incomes up to $225,000 per year.

I advise everyone to check with their accountant for personal qualifications regarding the tax credit.

I have had the opportunity to work with a number of different buyers in the last few months who are influenced by the credit to start to look.  Based on what their loan officer's say, they are not dependent on the tax credit but are influenced by it.  At a time when we need to jump start the economy, isn't that a good thing? 

Besides the realtors, I see the tax credits benefitting the independent contractors who are in need of work. 

To sum it up, this is a great opportunity for the first time home buyers and the existing home owners.  In addition, people may qualify for grants through Dutchess County and the City of Poughkeepsie.

Please contact me for any information in the Dutchess County, Putnam and Westchester County areas in New York.

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