-The tax credit is available for first-time home buyers only.
-The maximum credit amount is $7,500.
-The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
-Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
-The tax credit works like an interest-free loan and must be repaid over a 15-year period.
Features at a Glance:
-Amount of credit is 10% of the cost of the home, not to exceed $7,500.
-Eligible properties are any single family residence that will be used for a principal residence.
-First-time home buyer is defined as one of more that has not owned a principal residence in 3 years previous to purchase.
-Effective dates are for puchase made after April 9, 2008 through July 1, 2009.
-Reduces income tax liability for the year of purchase, either claimed on 2008 or 2009 tax return for that tax year. Purchase Jan-April 15 of 2009 for 2008 taxes if preferred.
-Tax credit is repaid at a yearly portion of 6.67% for 15 years and begins 2 years after the credit is claimed. If $7,500 is claimed, the yearly portion to be paid would be estimated at $500.
1. Know first what your household income is and agree not to spend more than one-third of it on total housing related costs.
2. Wait until you can afford a twenty percent down payment; while it may sound old fashioned it's excellent protection both financially and mentally. This was the case with myself as well.
3. Do not try to keep up with the Jones' the vast majority of them are likely financially clueless and are swimming in debt.
4. If you anticipate moving in less than five years be VERY sure that you are buying into a strong housing market. Closing and selling costs will take a big bite out of your finances.
5. Do not be afraid to talk about money, all too often in relationships it becomes the pink elephant in the room.
Scott Swindle sswindle@homeownersmtg.com 803-466-3705 (cell) is a great place to start. He is the finest mortgage lender I know.
And lastly always consult a REALTOR from the start of the process until the end; their expertise and input will be invaluable to a satisfactory home buying experience.
1. Have your furnace inspected and serviced by a heating and air contractor; Dennis O'Neill 360-0093 (cell) dobomoko@aol.com is the best in our market
2. Leaking heat ducts can be a major source of energy loss. Look for separating ducts at joints and connections to equipment; to fix use a heavy metallic tape or a paint-on elastomeric sealer.
3. Insulate around heat ducts as this is an important part of their efficiency. To insulate them use a spray adhesive to anchor the insulation if it is not firmly affixed. If the ducts are old the insulation may contain asbestos, a health hazard. Check with the environmental protection agency and American Lung Association for tips.
4. Check for leaks at all plumbing pipes and repair or replace leaking ones. The pipes attached to the hot and cold ports on the water heater are prime candidates for corrosion.
5. Carbon monoxide is a colorless and odorless gas that can be lethal. Make sure appliances are operating efficiently and are properly vented. Install a carbon monoxide alarm and test it frequently.
6. Caulk cracks in concrete walls with a high quality flexible caulk. Cracks that allow water to enter should be filled with hydraulic cement.
7. Minimize water entry by installing rain gutters and downspouts that discharge away from the foundation. Soil around the home should slope away from the foundation.
8. Water in the basement should be collected by a sump pump. Be sure the sump and pump are clean and working.
9. Replace rubber water supply hoses on your washer with braided stainless steel ones to prevent burst hoses and flooding. Disconnect the dryer duct and remove lint buildup for fire safety.
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