6/16/09
$8,000 Home Buyer Tax Credit at a Glance
American Recovery and Reinvestment Act of 2009.
The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 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.
We are awaiting information to determine how and if the tax credit can be applied to the down payment/closing costs upfront. This process would entail getting a second mortage (bridge loan) from the lender and then repaying the second mortgage with the proceeds from the tax credit. Details to follow.
The Tax Credit ends in December 2009.
Also, go to www.sourcefinancialfederalway.com. See debut of our “Preferred Partners” page
This is a great incentive, isn’t it? Although, you should really specify that people should apply for the tax credit BEFORE December 1, 2009.