Home Buyer Tax Credit Released

Are you interested in buying a new home this year and have questions about the $8000 tax credit? You are not alone. Many people who are interested in buying a home this year are asking questions about the $8000 tax credit.

Details of the first time home buyer tax credit have been released.  This is probably the most positive piece of news in our industry in years!!!

Here are the highlights:
·         The Tax Credit is the lesser of 10% of the purchase price or $8000
·         The Tax Credit is “real money” that you get on your as part of your tax refund
·         This credit does not need to be repaid if you live in the home for 3 years
·         A First Time Home Buyer is defined as someone who has not owned a Primary
        Residence in the past 3 years
·         Once you marry a homeowner you automatically become a homeowner regardless
        of who is on the title and the loan
·         The credit begins to “phase out” for Singles with income between 75k and 95k and
        Married between 150k and 170k
·         If Mom and Dad (that own a home) Co-Sign for their child to help him qualify, the
        child can still take the Tax Credit.  Perfect for an FHA loan!
·         Buyers can take the credit on their 2008 Tax Return if they purchase prior to filing
        their 2008 Taxes.  If you have already filed, you are allowed to file an amended
        2008 return
·         This Tax Credit is a Tax Related issue and therefore you should consult a tax
        professional for advice.  A good website for info is
        www.federalhousingtaxcredit.com