What would you do with an extra $8,000?

If you are a first time home buyer, or haven't owned a home in three years, now is an EXCELLENT time to buy a home. My first post on the subject, Credit for First Time Homebuyers in MS depicts the differences between the old and the new stimulus packages.

If you purchased a home on or after April 9, 2008 but before January 1, 2009, you are entitled to a maximum tax credit of $7500. After January 1, the credit was increased to either 10% of the price or a maximum of $8,000, whichever is less.

What could you do with an extra $8,000?

Before January 1, 2009, the tax "credit" was actually an interest-free loan, to be repaid over 15 years through your annual tax return, beginning in 2010. Should you sell your home before the 15 years elapse, then the remaining credit would be repaid (in full) when the sale closes.

For homes purchased between January 1 and December 1, 2009, you must live in the home for three years without having to repay any portion of the credit. If you have not owned a home for three years, although you are not a "first-time buyer", you are still eligible for the tax credit.

The attached tax form, Form 5405, will explain how to file for the credit, whether you purchased a home in 2008 or 2009.

Rates are lower than ever. If you haven't purchased a home since January 1, 2006, with the additional tax credit available through December 1, can you think of a BETTER TIME TO BUY?

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Pat Starnes, a Realtor since 1988, specializes in Mississippi Residential Real Estate and can assist you with buying or selling in the Jackson MS Metro area.

Search homes for sale in Brandon, Pearl, Flowood, Madison, Ridgeland, Florence, Bryam, or Jackson, MS.

Written and Published by Pat Starnes REALTOR

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