First-time Homebuyer Tax Credit Expires Soon!

The good news is that first time homebuyers can get up to $8,000 in tax credits with the purchase of a home.  The bad news is this program, as it is stated today, will expire soon.  These are some key highlights of the program:

• For first-time homebuyers only. To qualify, you must not have owned a principal residence during the three-year period propr to purchase.
• Amount of tax credit. The maximum tax credit is $8,000.  The credit will equal 10% of the home's purchase amount, up to this $8,000 limit.
• The program expires. In order to receive this tax credit, you must close on your home before December 1, 2009.
• You do not pay this back. The previous tax credit was not actually a credit at all, it was a loan.  This tax credit is a true credit and never has to be paid back, providing you follow the program guidelines, we work with lenders that can fully explain the requirements.
• You get the credit even if you did not pay this much in taxes. The homebuyer credit can be claimed even if the taxpayer paid less than the credit in taxes for the 2008 tax year.
• Your income must qualify. Single taxpayers with incomes up to $75,000 and married taxpayers with incomes up to $150,000 qualify for the full credit.  You can get part of the credit if your income exceeds these amounts.
• Tax credit is applied to 2008 taxes. The tax credit is claimed against your 2008 tax returns for homes purchased after January 1, 2009 and closed before December 1, 2009.  Consult with your tax adviser on filing your amended return to receive your credit.

But remember, time is running out!  You need to be making your home selections SOON in order to get closed in time.  We are ready to help you with all the resources a team of real estate professionals provide.  Contact us right away!