I think it is amazing that we have the Government offering this fantastic Stimulus to First Time Home Buyers and Those who have not owned a personal residence in 3 years-The $ 8000 Home Buyer Tax Credit but that few Home Buyers understand it. Through the premature news reports when this Law was just a bill, Many people are confused with amounts, the terms, and truth. Just the other night I was showing a home to a couple who were first time Buyers and they were under the impression that this tax credit was just some kind of write-off on their income taxes. They were told by a mortgage broker that they would not be getting the $ 8000 in any monetary form. I also still here Buyers talk about how they have to pay back the tax credit-like it was set up in the old $ 7500 Buyer Tax Credit. One Buyer, who wasn't a first time Buyer, was possitively sure they would receive a $ 15,000 tax credit. Even had one older lady who owned a home, but didn't buy a home in three years, think that she qualified as well.
This is a great offering that anyone who is renting should try to take advantage of and those of us in the housing profession: REALTORS, Mortage Brokers, Title Companies, and others need to first educate ourselves and then educate the public. I think the Government could have done a little better of a job educating the public. Bottom Line: First Time Buyers will receive 10% of the Purchase amount of their home, up to $ 8000 as a refundable tax credit. This amount will be a direct dollar-for-dollar reduction of their tax liability and the remainder will be refunded to them. Any way you look at it-They will get up to $ 8000 as a reward for Buying a home before December. Let me say that again. YOU NEED TO BUY AND MOVE INTO THE HOME BEFORE DECEMBER 1st, 2009 !
There are some income limitations that may reduce or eliminate the Tax credit. Check with the IRS for details or call 920-265-0320 for a FREE Information Packet.