$8,000 dollar housing stimulus

Bringing the Dream of Home Ownership Within Your Reach

Pretty well everyone is aware that as  part of its plan to stimulate the U.S. housing market and attempt to address the economic challenges facing our nation, Congress passed a tax credit of up to $8,000 to first-time home buyers. What most people don’t understand is that first-time home buyer means you cannot have owned a home with in three years of purchasing. That means both you and your spouse, even f your spouse is not on the purchase agreement.

To Qualify you must purchase a home between January 1, 2009 and December 1, 2009.   Purchase means close on that home no later than the last day in November. To be safe, try and close earlier because you never know with delays and what not. It would be pretty sad to have a last minute unexpected delay and not close until Dec 2 2009! I don’t believe there will be any exceptions to that rule no matter whose fault the delay is. So plan according.

Questions about the $8,000 tax credit answered

The National Association of REALTORS has published an easy to understand question and answer covering the $8,000 credit, which I think every buyer should read.  Aside from reading it every buyer needs a qualified buyers agent to help them find that perfect home… so if you’re ready give us a call! We’d love to help you but please don’t wait until the last minute to start the process!  If you’re unsure how to proceed and start the home buying process just give me a call at 603.548-7728 and we can schedule some time to talk about the process.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

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 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home-the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income-single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum 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 $75,000 and $95,000 for single buyers and between $150,000 and $170,000 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 $95,000 for singles and over $170,000 for couples are not eligible for the credit.

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 the three-year period, the credit will be recouped on the sale.