Initially the first time home buyer tax credit didn’t seem like a motivational factor for residents here in Sequim and Port Angeles. However, since August, once people began to see time winding down on the tax credit; purchases began to increase quickly. For many locals who have be patient are now finding lower home prices, lower interest rates, and all this with an $8,000 credit on the horizon.
3 POINTS about the new Home Buyer tax credit that has been extended as of November 6th.
1. First time home buyer purchases between Jan. 2009 and April 30th 2010 may be eligible. If under contract by or on April 30th you have until June 30th to close on your home purchase.
2. Move up buyers may also eligible for a tax credit up to $6,500. For this you must have resided in your current residence for five out of the last eight years.
3. See this link http://www.irs.gov/pub/irs-pdf/f5405.pdf for the 2008/2009 form. It can be used if you purchased your home before and after Nov. 6th 2009. See http://www.federalhousingtaxcredit.com/ for more information.
There are unique scenarios that will disqualify you for the credit like purchasing the home from your parents. The home buyer tax credit is having a significant impact on purchases in little Ol’ Sequim, Washington. 70% of the home loans that I am currently working on are eligible for the tax credit. 40% of those are USDA Zero down purchase loans. Let me know if you have any questions.
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