Homebuyer's Tax Credit

Homebuyer’s Tax Credit

Now’s Your Chance!

As part of its plan to stimulate the US housing market and address the economic challenges facing our nation, Congress has passed new regulation that:

·         Extends the First-time Homebuyer Tax Credit of up to $8,000 to first-time homebuyers until April 30, 2010.

·         Expands the credit to grant a $6,500 credit to current homeowners purchasing a new or existing home by April 30, 2010.

·         As long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close.

Who Qualifies for the Extended Credit?

·         First-time homebuyers who purchase homes by April 30, 2010.

·         Existing homeowners purchasing a home by April 30, 2010, who have used their current property as their principal residence for the last five consecutive years.

Is the Existing Homeowner Required to Sell Their Current Home?

No. The law does not require that the existing homeowner sell their current property. They could convert it to rental or wait until the market value increases to sell. The new purchase can be at a lower price point than the existing home.

How Is a Buyer’s Credit Amount Determined?

Each homebuyer’s tax credit is determined by two additional factors:

1.      The price of the home.

2.      The buyer’s income.

Price

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

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.

Please sign up below and find out if you qualify: