• 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!

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer's tax credit is determined by two factors:

The price of the home – the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income – single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum tax credit.

If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

The tax credit passed earlier this year is limited to $8,000 and has income caps.

U.S. Sen. Johnny Isakson, a Georgia Republican, introduced the legislation, and Senate Banking Committee Chair Christopher Dodd, a Connecticut Democrat, quickly stepped up to co-sponsor.

The National Association of REALTORS® and the National Association of Home Builders have said they would like to see the tax credit improved.

Source: The Wall Street Journal, Jessica Holzer (06/10/2009)

Are you going to look back at this time, low interest rates and tax credits, and wish you had bought your next home?  Let's talk soon to develop the best plan of action for you and your family.