2009 First Time Homebuyer Tax Credit

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By now I am sure you have heard of the First Time Homebuyer Tax Credit that Congress has approved in an effort to stimulate the housing market.  If not, here is a recap of what the Tax Credit is all about.

  • You must purchase your home between January 1, 2009 and December 1, 2009
  • You and/or your spouse must not have owned a home in the past three years
  • The tax credit is equal to 10% of the purchase price up to $8,000
  • There is an income limit.  Single purchasers have a yearly income limit of $75,000; married purchasers have an income limit of $150,000
  • There are decreased credits available for single purchasers with a yearly income of $75,000-$95,000 and married purchasers with a yearly income of $150,000-$170,000. The closer you get to the maximum income, the smaller the credit
  • You must reside in the home for at least three years to prevent having to pay the monies back
  • First Time Homebuyer Credits may be applied to purchases of primary residences: single family, townhome, condo.
  • HUD is working on allowing the credit to be used as part of your downpayment!  I will keep you posted on this awesome news!

 

Purchasers are able to ammend their 2008 tax returns after the closing of their home to receive the credit this year.

I have purchasers that have done this and have received their credit in as little as two weeks! 

If you have been thinking of purchasing a home, now is the time to make your dream come true!

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