$8000 tax credit

Tax Credit Extended for Home buyers

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

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 home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, 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 tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Are you looking for a Realtor to help you find a new home in Tallahassee? I would be honored to assist you with the purchase of your largest investment. Remember it cost's you nothing to work with a Realtor when you're buying real estate, so why not give me a call today?

Search the Tallahassee MLS
Nathan Cross, Realtor
The Naumann Group Real Estate, Inc
New Home Sales Specialist
(850) 443.2125
nathan@bluetomato.me

$8000 tax credit

Do you qualify for the $8,000 tax credit?

I get asked a lot about the first-time homebuyer tax credit, so I thought I would write a post about the credit and what criteria a buyer needs to meet in order to qualify for it.  $8,000 dollars is a lot of money and if used correctly can be a big help to anyone buying a home in todays market.

The most important aspect of the credit in my opinion is the time frame in which a qualified homebuyer needs to close on their home in order to receive the $8,000.  If you close on a home after November 30, 2009 you will NOT qualify for the credit.

Buyers claim the credit on their federal tax return which will reduce their tax liability.  If the $8000 tax credit is more than what you owe for your taxes , you will get a refund check for the difference.

The new tax credit does not have to be repaid if the buyer stays in the home at least three years.  If you sell before the three years is up, the entire amount of the credit is recaptured on the sale of the home.  Please take it from a professional if you are not planning on living in a home for at least 3 years you should not be buying now.

I have a great resource that you can download for free that will explain the tax credit in more detail.

Understanding the homebuyer tax credit

Are you looking for a Realtor to help you find a new home in Tallahassee? I would be honored to assist you with the purchase of your largest investment. Remember it cost's you nothing to work with a Realtor when you're buying real estate, so why not give me a call today?

Search the Tallahassee MLS
Nathan Cross, Realtor
The Naumann Group Real Estate, Inc
New Home Sales Specialist
(850) 443.2125
nathan@bluetomato.me

$8000 tax credit

$8,000 First-Time Homebuyer Tax Credit Video

Watch this video to get detailed information about the $8000 tax credit for  First-time homebuyers, and how it may help you purchase  your new home.

Are you looking for a Realtor to help you find a new home in Tallahassee? I would be honored to assist you with the purchase of your largest investment. Remember it cost's you nothing to work with a Realtor when you're buying real estate, so why not give me a call today?

Search the Tallahassee MLS
Nathan Cross, Realtor
The Naumann Group Real Estate, Inc
New Home Sales Specialist
(850) 443.2125
nathan@bluetomato.me

$8000 tax credit

New details released about the FHA $8,000 downpayment advance

New details have been announced that affect how the $8,000 first-time homebuyer tax credit can be used.

There has been a lot of miss information floating around about the $8,000 tax credit.  FHA loans require that a 3.5% downpayment be made by the borrower.  Speculation by many in the industry suggested that eligible first-time homebuyers would be able to use the $8,000 tax credit towards their downpayment. Unfortunately that is not true. First-time homebuyers will have to come up with the 3.5% downpayment on their own, then the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and paying closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back. This type of financial product may not be immediately available to buyers since lenders will need to create the internal programs to handle the process.

Nathan Cross, Realtor
The Naumann Group Real Estate, Inc
850.443.2125

$8000 tax credit

Gov. Charlie Crist signs $8,000 homebuyer tax credit advance into law

Beginning July 1, 2009 First-time homebuyers who qualify for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on their home, and then repay the amount borrowed when they get their tax refund. The program will operate through local county housing administrators, though details are still being worked out.

New developments as of July 1st 2009

Florida created a program to help first-time homebuyers get their federal tax credit early, allowing them to use up to $8,000 toward a downpayment. The effective date for the program is July 1; however, it will probably be another few weeks before the funds are available.

While most first-time homebuyers qualify for the tax credit (given by the government as an income tax rebate regardless of tax owed), they once had to buy a home first, submit the info to the IRS through their tax return, and wait for the $8,000 rebate. To help these buyers get the money early enough to use it as a downpayment, the State of Florida created a program of bridge loans, the Florida Homebuyer Opportunity Program (FLHOP), where money can be borrowed from the state and then paid back after the new homeowner receives his tax credit.

Under a different federal program, the Federal Housing Administration (FHA) has done something similar, yet with a significant difference: The federal program applies to FHA loans only, and buyers must still come up with a minimum downpayment of 3.5 percent.

Nathan Cross, Realtor
The Naumann Group Real Estate, Inc
(850) 443.2125