Haven't owned a home in the past 3 years? You may qualify for the first time home buyer tax credit (up to $8000).
Owned the same home for at least 5 of the last 8 years? You may qualify for up to a $6500 tax credit.
In a nut shell:
1st time home buyer (haven't owned in the past 3 years) can get a credit of 10% of the sale price (up to $8000)
Current home owner can get up to $6500 if the home they are selling or vacating was used as their principal residence for five consecutive years within the last eight years.
Dead line: So long as a written binding contract to purchase is in effect on April 30, 2010 and closes by July 1, 2010.
A tax credit is real money. If you owe $2000 that $8000 tax credit would get you a refund of $6000. (disclosure- I'm not an accountant and this is not tax advise)
Something to consider when timing your real estate purchase:
- A short sale can take up to 6 months (possibly longer)
- If your lease is up this fall- will it cost you $8K to break the lease or is that double payment for a few months equal to $8K?
- If you don't qualify for the tax credit, don't sweat it- prices are low and interest rates are great. Both reason enough to purchase.
Please contact me for more information about buying or selling real estate in North Oakland or Lapeer Counties.
Keller Williams Realty
lake blog: http://SoutheastMichiganLakefrontHomes.wordpress.com