While some home buyers have been spurred on by current prices in Massachusetts, low interest rates and a huge inventory, there is now another reason to pull the trigger on a home purchase this year.
As of March 26, 2009 there is a new economic stimulus tax credit that is providing a great opportunity for first-time home buyers.
A first-time homebuyer is defined as anyone or their spouse who has either never owned a home or has not owned a home for at the past three years.
Although there is much debate about whether or not the 2009 American Recovery and Reinvestment Act will actually stimulate the economy, this portion of the plan can help to make it more affordable for some homebuyers to get into the market.
- To get the full credit you will need to live in the home for three years.
- Ownership of a vacation property does not disqualify you.
- The limit on your modified adjusted gross income is $75,000 for a single taxpayer and $150,000 for married couples. Above those limits some partial tax credits are available.
- You must use the home you buy as your principal residence rather than a second home or investment property.
- The home must be purchased between January 1 and December 1 of 2009.
- An $8,000 tax credit or $10% of the purchase price of your home.
- Unlike the previously offered $7,500 credit which was actually a low interest loan, the current tax credit does not have to be paid back.
If you have been holding back from making a home purchase this is a chance to put $8,000 back into your pocket in the process.
Couple that with The Buyers' Counsel's 20% cash back rebate and you have further inspiration to check out what this current housing market has to offer.
Copyright 2009 - Claudette Millette, President, TheBuyersCounsel - 800-392-1446, E-mail
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