Now is the time to buy for First-Time Buyers. Opportunity only knocks once; and, if you have been waiting, now is the time to act because time will run out!
For first time home buyers who thought owning a home was only a dream, the recently enacted legislation, H.R. 3221, also known as the Housing and Economic Recovery Act of 2008, will provide a tax credit of 10% of the home cost, but not to exceed $7,500 which could now make your dream a reality. H.R. 3221 also includes reform of Fannie Mae and Freddie Mac, FHA modernization, with permanent increases in conforming and FHA loan limits
If you are a buyer who has been sitting on the sidelines trying to decide if the time is right...The answer is a resounding "YES!!!!!" You will definitely want to take advantage of this opportunity! And, keep in mind, time is of the essence: You must make your purchase on or after April 9, 2008 and no later than July 1, 2009 to be eligible.
The table below provides a recap of H.R. 3221 - Housing and Economic Recovery Act of 2008:
FIRST TIME HOME BUYER'S TAX CREDIT
(Housing and Economic Recovery Act of 2008)
H. R. 3221 (Recap)
|Feature||Housing & Economic Recovery Act of 2008|
|Amount of Credit||10% of cost of home, not to exceed $7500|
|Eligible Property||Single family - must be principle residence (includes condos, co-ops)|
|Refundable||Yes. Reduces income tax liability for one year of purchase. Claimed on tax return for that tax year.|
|Income Limit||Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000 respectively)|
|First-Time Home Buyers Only||Yes. Purchaser (and spouse) may not have owned a principal residence in 3 years previous to purchase.|
|Recapture||Yes. 6.67% to be repaid each year for 15 years. If the home is sold before 15 years, the remainder of credited is recaptured on the sale.|
|Effective Date||Purchases on or after April 8, 2008|
July 1, 2009
|Down Payment Assistance Program||DOES ALLOW down payment assistance pgorams funded by other sources with the exception of sellers and those who have a financial interest in the sale. This assistance can come from family members, approved grants and a variety of other sources all of which are subject to lender approval and proper verification. Certain seller assistance programs that are allowable now will terminate October 1, 2008|
Information is believed accurate, but not guaranteed. Please verify with your lender.
**H. R. 3221 - Frequently Asked Questions...Answered
**U. S. Senate Roll Call Votes 110th Congress, 2nd Session - VOTE SUMMARY (By Senator Name)
**U.S. Senate Roll Call Votes 110th Congress, 2nd Session - VOTE SUMMARY (By State)