Yes, it's true. You may have heard about this in the news.....Congress passed the Housing and Economic Recovery Act of 2008....but what does that mean for first-time home buyers?
It means thousands of buyers are eligible to buy a home! Congress has passed this Recovery Act to stimulate housing sales across the United States. First-time home buyers are eligible to receive a $7500 government loan. This loan does have to be paid back to the government, interest-free, over 15 years. However, if buyer decides to sell the home prior to the 15 year mark, proceeds from the sale will go toward paying off this government loan.
Any first-time buyer considering home ownership may be able to take advantage of this. There are so many benefits to being a home owner this is one of thousands of options! Buyers need to act now as this loan is only available from April 9, 2008 through July 1, 2009.
|
Law |
H.R. 3221 Housing and Economic Recovery Act of 2008 |
|
Amount of Credit |
Ten percent of cost of home, not to exceed $7500 |
|
Eligible Property |
Any single family residence (including condos, co-ops) that will be used as a principal residence. |
|
Income Limit |
Yes. Full amount of credit available for individuals with adjusted gross income of no more that $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000, respectively). |
|
First-time Homebuyer Only |
Yes. Pruchaser (and purchaser's spouse) may not have owned a principle residence in 3 years previous to purchase. |
|
Recapture |
Yes. Portion (6.67% of credit) to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale. |
|
Effective Date |
Purchases on or after April 9, 2008 |
|
Termination |
July 1, 2009 |
|
Interaction with Alternative Minimum Tax |
Can be used against AMT, so credit will not throw individual into AMT. |
Chart courtesy of: Bill Ladewig, American Pacific Mortgage
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Looking to buy or sell a property in Madison, WI, Deforest, Sun Prairie, Windsor, Waunakee, Middleton or any of the other surrounding communities? You've come to the right place!
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