You have very little time left, if you are planning on purchasing a home and receive the First-Time Home Buyer Credit of up to $8,000, or the Current Homeowners’ credit of up to $6,500, since they both expire April 30, 2010.
This is such a good benefit to homebuyers that there is no negative I can determine, and with interest rates at historic lows and housing inventories up, you can purchase a home that was only wishful thinking a couple of years ago.
Here are some details on the housing credits from www.Realtor.org:
Who qualifies: First time homebuyers who purchase homes through April 30, 2010, and current homeowners purchasing a home through April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years with the last eight.
Which properties are eligible: The Extended Home Buyer Tax Credit may be applied to primary residences, including, single-family homes, condos, townhomes and co-ops.
How much is available? The maximum allowable credit for first-time homebuyers is $8,000. The maximum allowable credit for current homeowners is $6,500.
How is a buyer’s credit amount determined? By two additional factors: The price of the home and the buyer’s income.
Price? Credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income: Single buyers with incomes up to $125,000 and married couple with incomes up to $225,000 may receive the maximum credit.
Can a buyer still qualify if it closes after April 30, 2010? Yes, as long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until July 1, 2010 to close.
Will the Tax Credit need to be repaid? No. The buyer does not need to repay the ta credit, if he/she occupies the home for three years or more.
For more details, go to www.Realtor.org.
Filed under: Important Information, People Are Talking About...
