First Time Home Buyers Credit Extended
Responding to pressure from consumers and industry experts, Congress has extended and expanded the homebuyer's tax credits.
The current program allows for a tax credit of 10% of the purchase price of a home up to $800,000 for a maximum benefit of $8,000. Income guidelines allow individuals with a modified adjusted gross income of up to $125,000 ($225,000 if married) per year to qualify for the full tax credit.
Those eligible may not have owned a home as a primary residence in the last three years.
Current homeowners that have used the home they are selling as a principle residence consecutively for 5 of the previous 8 years are also eligible for a tax credit of $6500.
These tax credits are available so long as a written binding contract to purchse is in effect on April 30, 2010. You do not have to close the purchase until July 1, 2010.
The credit does not have to be repaid unless the home is resold within 36 months. And, you may live in a state that allows consumers to take out a short-term loan to help cover closing costs and then repay the loan with the federal tax credit.
So - what are you waiting for? Interest rates are low, inventory is plentiful, home prices are favorable and the government wants to put money back in your pocket.
Call me and we'll talk houses.
