NEW HOUSING STIMULUS BILL
Here is some information on the new Housing Stimulus Bill. The new bill cannot be used in conjunction with the Down-payment assistance program. Therefore, if you are a buyer that needs down-payment assistance, that loan must close before 9/30/2008 in order to qualify, because that program will be "no longer offered." I suggest scheduling your closing 9/15 or sooner.
The new housing bill offers a tax credit of up to $7,500 if married and file jointly or up to $3,750 if you are single (based on income). This is NOT A DEDUCTION. This is a credit; real money in that amount. This means, if you qualify (first time home buyer or haven't owned a home in the last three years), you will have up to $7,500 deducted or refunded from your Tax Return. For some, this will mean they will pay $7,500 LESS in taxes as a result of the home purchase. However, the $7,500 is a loan at no interest, which will be recaptured on their tax return at a rate of 6.5% (roughly $500 per year) until it's repaid. The 6.5% is the amount you will repay each year for 15 years; it is NOT interest. Re: $5,000 credit (due to income qualification). You will pay $5,000 less in taxes after your home purchase. And, for 15 years, you will pay $325 in taxes on your tax return to repay the credit. For the $7,500 credit (maximum allowed). You will pay $7,500 less on your tax return and repay roughly $500 per year for 15 years.
This is awesome. If you're in the market, I urge you to buy while this offer is in effect. Buyers must purchase and move into a home between April 2008 and July 2009. This tax credit is refundable, meaning home buyers will receive a check from the government if their tax liability dips below zero. However, it has to be repaid within 15 years of purchasing the home.
****I ADVISE EACH CLIENT to seek the counsel of a certified public accountant or tax lawyer to insure they qualify for the program. My offering of information on this program is no way a guarantee of this credit.
If you're thinking of purchasing a home in the Charleston or Summerville South Carolina area, I urge you to contact me to take advantage of this program.
Lisa Thompson,
Realtor, ABR
Coldwell Banker United Realtors
843/270-2221
www.RealEstateFromLisa.com
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