8,000 reasons to purchase

Mortgage and Lending with First Priority Financial

If drastically reduced home values and extremely low interest rates are not enough to entice a homebuyer into this Real Estate market, perhaps the $787 billion American Recovery and Reinvestment Act may help. Tucked quietly away within this massive stimulus package is an $8,000 tax credit. To qualify: an individual will need to purchase a primary residence between January 1, 2009 - December 1, 2009. The credit is only available to first-time homebuyers, and there are income limitations. A single person earning over $75,000 per year or a married couple with a combined income over $150,000 per year will not qualify for this credit. The tax credit is not a loan and will not require repayment unless the home is sold within the first three years of ownership. Lastly, the $8,000 is a true tax credit and will reduce the tax liability of the home buyer.

The median price of a home in Pierce County is $235,000. When compared to this figure, the $8,000 tax credit accounts for 3.4% of an average homes value. Those seeking FHA financing will need to make a down-payment of 3.5%, and while the tax credit cannot be used for this purpose, it is comforting to know that once income taxes are filed, the majority of what was spent on a down-payment may be reimbursed via the credit.

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