The U.S. government is offering a refundable tax credit of up to $7500 for first time homeowners.
For first time home buyers, who purchase a principal residence between 4/09/08 and 6/30/09. there is the possibility of up to $7500, as a tax credit. A first time home owner is one that hasn't owned a home for at least 3 years. The credit will be up to 10% of the purchase price or $7500, which ever is less.
The credit will work as an interest free loan that will have to be repaid over a maximum of 15 years (or $500/year). If you sell the property before the 15 year timeframe, or before the amount is paid off, you will owe the balance provided that there is a capital gain to cover the balance, if you sell for less than the amount still owed, the government will absorb the loss. What this means, is the government is sharing in the risk of no price appreciation on the property.
There are income qualifications also. Individuals above $75,000 or couples above $150,000 may lose some or all of the credit. Also, the money for the mortgage cannot come from a state or local bond fund for mortgages (such as SONYMA).
If you think there's a chance you may qualify for this when looking for a home in the Mendon, Henrietta or Pittsford, NY areas and want to learn more about it, please contact me, I'd love to help.
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