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!