As part of the stimulus package recently approved, there is an $8000 tax credit for first time home buyers! A first time home buyer is defined as anyone who has not owned a home in the past 3 years.
Unlike the previous $7500 package, this is a real TAX CREDIT, and does not need to be paid back, as long as the home is the buyer’s primary residence for at least 3 years.
With rates around 5% for a 30-year fixed, and some loans requiring as little as 3.5% down, the time has never been better for first time home-buyers to begin their path of financial stability through equity in their home.
FHA Loan terms also allow for a non-occupant co-borrower (Like a parent or grandparent) to help their younger family members qualify to buy a home at this incredibly opportune time, and have payments, in many cases, less than rent!
Here are a few of the main points about this tax credit.
- The tax credit is for first-time home buyers only.
- 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.
A great resource for the full details on this tax credit is http://www.federalhousingtaxcredit.com/
Please contact me with any questions. I would love to help you take advantage of this amazing opportunity, and find the perfect home!