Charleston SC Real Estate Tips: The $8000 Tax Credit Can Be Used As A Downpayment!

If you are a first time homebuyer in the Charleston SC real estate market, there is almost no excuse not to buy a home!

Prices have pretty much hit bottom, interest rates are still at or near their 40 year lows, and inventory is high--all ingredients for a buyer's market.

There is also the $8000 first time home buyer tax credit, that is a true credit and not a deduction. What is the difference?

You can be refunded up to the full $8000 on your taxes--if you owe $2000 on your taxes, now you will instead see a REFUND of $6000! Plus, it is not too late to claim the credit on your 2008 taxes--even if you have already filed them!

Now, the government has added a new wrinkle to this credit--they are now allowing home buyers to access the credit at the closing table so that you can use it for your down payment! Free money for buying a home courtesy of Uncle Sam (of course, you have to remain in the home for a minimum of 3 years so that there is no recapture).

This doesn't have to be your first home to qualify--if you have not had ownership interest in a primary residence in the last 3 years, you qualify for the credit!

If you are a married couple, and neither of you have had ownership interest in a primary residence in the last 3 years, then you are eligible. However, if one of you has had ownership interest in the last 3 years, then neither of you are eligible.

For couples planning a Charleston SC wedding, it might be best to buy a home first, before marrying, in order to take advantage of the tax credit. More information for Newlywed homebuyers looking for Charleston homes for sale.

If you are a first time buyer, you have until December 1, 2009 to take advantage of this unique opportunity--it is truly a "Perfect Storm" of opportunity for first time buyers!

Get more information about buying Charleston homes for sale, including helpful info about the $8000 tax credit and first time homebuyer information.

Jeff McIlhenny is a licensed Realtor and Broker with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or jeffm@weichertpc.com.