The Housing and Economic Recovery Act of 2008 was recently passed - causing many changes in the housing market as we know it. One change is that first time buyers are now eligible for a tax credit of up to $7,500 when they buy their first home.
I have detailed below some information on the first time buyer credit and how it can benefit first time home buyer's in the Williamsburg, VA market. Please note that this is ONLY available to First Time Homebuyers. A first time buyer is considered someone who has not owned a primary residence in the last 3 years.
1) How much is the credit for? 10% of the home price - not to exceed a total of $7,500.
2) What properties are eligible for this credit? Any single family residence (or condo) that the buyer plans to use as a primary residence.
3) Is there an income limit for this credit? YES! The full credit is available to individuals with an adjusted gross income of less than $75,000. (This is $150,000 for those filing jointly).
4) Does this tax credit have to be repaid? YES! 6.67% is to be repaid each year for 15 years. If the home is sold before 15 years has passed, the balance is due when the home is resold.
This is some basic information on the new $7,500 tax credit. For more information about this credit and how it would affect you as a first time home buyer in Williamsburg, VA please don't hesitate to contact me.
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