first time home buyer tax credit

Home Buyers in 2009: What’s the $8,000 First-Time Home Buyer Tax Credit all about?

What do we know about the $8,000 Tax Credit for this year’s first time home buyers — Part of the new $787 Billion Stimulus Plan? Here, we’ll shed some light on the bill that has house hunters talking.

What’s different about this year’s first-time home buyer’s tax credit?

Well, let’s talk about the obvious difference. Last year’s tax credit for first-time home buyers was for $7,500, so this year’s $8,000 credit will give you an additional $500 or up to 10% of the purchase price of your home (whichever is less). But the biggest difference between the two in the eyes of a home buyer is probably this: Last year’s tax credit had to be paid back over the following 15 years. In essence, it was an interest-free loan. But this year’s tax credit is exactly that, a credit. The $8,000 does not have to be paid back at any time.

Who can qualify for the $8,000 first-time home buyer’s tax credit?

At this point in time, those who purchased their first home in 2008 under the provisions of the former $7,500 credit won’t qualify for the upgraded plan. House hunters who buy their homes between Jan. 1 and Dec. 1 of 2009 could qualify for the $8,000 (true) credit. There are, of course, particular criterion for qualifying:

• To qualify as a “first-time home buyer” you must have not owned or co-owned a home within the three years prior to this year’s closing date.

• Household income is a factor as well. To be eligible, adjusted gross income for single taxpayers can be up to $75,000, and $150,000 for dual-income families filing jointly.

• The new $8,000 tax program also allows purchases financed with state and local tax-exempt mortgage-revenue-bond programs — different from last year’s tax incentive.

• As a first-time home buyer, you should know that your new home must be used as your principal residence (not a second home or investment property).

How will the $8,000 first-time home buyers tax credit help?

Good question. There’s no telling for sure, but the National Association of Realtors projects that 300,000 more houses will sell during 2009 as a direct result of the new $8,000 credit. If you’re considering buying a home, there’s no better time. So get your real estate agent from In-House Realty and your pre-approval and hop to home shopping. If you’ve owned a home previously, be sure to time your new purchase appropriately (3 years out) so that the closing date allows for you to take advantage of this new credit.

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first time home buyer tax credit

Home Buyers in 2009: What’s the $8,000 First-Time Home Buyer Tax Credit all about?

What do we know about the $8,000 Tax Credit for this year’s first time home buyers — Part of the new $787 Billion Stimulus Plan? Here, we’ll shed some light on the bill that has house hunters talking.

What’s different about this year’s first-time home buyer’s tax credit?

Well, let’s talk about the obvious difference. Last year’s tax credit for first-time home buyers was for $7,500, so this year’s $8,000 credit will give you an additional $500 or up to 10% of the purchase price of your home (whichever is less). But the biggest difference between the two in the eyes of a home buyer is probably this: Last year’s tax credit had to be paid back over the following 15 years. In essence, it was an interest-free loan. But this year’s tax credit is exactly that, a credit. The $8,000 does not have to be paid back at any time.

Who can qualify for the $8,000 first-time home buyer’s tax credit?

At this point in time, those who purchased their first home in 2008 under the provisions of the former $7,500 credit won’t qualify for the upgraded plan. House hunters who buy their homes between Jan. 1 and Dec. 1 of 2009 could qualify for the $8,000 (true) credit. There are, of course, particular criterion for qualifying:

• To qualify as a “first-time home buyer” you must have not owned or co-owned a home within the three years prior to this year’s closing date.

• Household income is a factor as well. To be eligible, adjusted gross income for single taxpayers can be up to $75,000, and $150,000 for dual-income families filing jointly.

• The new $8,000 tax program also allows purchases financed with state and local tax-exempt mortgage-revenue-bond programs — different from last year’s tax incentive.

• As a first-time home buyer, you should know that your new home must be used as you principal residence (not a second home or investment property).

How will the $8,000 first-time home buyers tax credit help?

Good question. There’s no telling for sure, but the National Association of Realtors projects that 300,000 more houses will sell during 2009 as a direct result of the new $8,000 credit. If you’re considering buying a home, there’s no better time. So get your real estate agent and your pre-approval and hop to home shopping. If you’ve owned a home previously, be sure to time your new purchase appropriately (3 years out) so that the closing date allows for you to take advantage of this new credit.

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first time home buyer tax credit

Home Buyers in 2009: What’s the $8,000 First-Time Home Buyer Tax Credit all about?

What do we know about the $8,000 Tax Credit for this year’s first time home buyers — Part of the new $787 Billion Stimulus Plan? Here, we’ll shed some light on the bill that has house hunters talking.

What’s different about this year’s first-time home buyer’s tax credit?

Well, let’s talk about the obvious difference. Last year’s tax credit for first-time home buyers was for $7,500, so this year’s $8,000 credit will give you an additional $500 or up to 10% of the purchase price of your home (whichever is less). But the biggest difference between the two in the eyes of a home buyer is probably this: Last year’s tax credit had to be paid back over the following 15 years. In essence, it was an interest-free loan. But this year’s tax credit is exactly that, a credit. The $8,000 does not have to be paid back at any time.

Who can qualify for the $8,000 first-time home buyer’s tax credit?

At this point in time, those who purchased their first home in 2008 under the provisions of the former $7,500 credit won’t qualify for the upgraded plan. House hunters who buy their homes between Jan. 1 and Dec. 1 of 2009 could qualify for the $8,000 (true) credit. There are, of course, particular criterion for qualifying:

• To qualify as a “first-time home buyer” you must have not owned or co-owned a home within the three years prior to this year’s closing date.

• Household income is a factor as well. To be eligible, adjusted gross income for single taxpayers can be up to $75,000, and $150,000 for dual-income families filing jointly.

• The new $8,000 tax program also allows purchases financed with state and local tax-exempt mortgage-revenue-bond programs — different from last year’s tax incentive.

• As a first-time home buyer, you should know that your new home must be used as you principal residence (not a second home or investment property).

How will the $8,000 first-time home buyers tax credit help?

Good question. There’s no telling for sure, but the National Association of Realtors projects that 300,000 more houses will sell during 2009 as a direct result of the nwe $8,000 credit. If you’re considering buying a home, there’s no better time. So get your real estate agent and your pre-approval and hop to home shopping. If you’ve owned a home previously, be sure to time your new purchase appropriately (3 years out) so that the closing date allows for you to take advantage of this new credit.

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first time home buyer tax credit

President Obama Signs the $787 Billion American Recovery and Reinvestment Act

We’ve been writing a lot about the American Recovery and Reinvestment Act and today it’s official.

That’s right. President Obama signed the Act, commonly known as the Stimulus Bill, into law today and the effects hopefully will be felt soon.

It wasn’t an easy ride for the President in his first few months in office. In fact, the legislation was split almost completely down partisan lines. And many experts consider the hard part of all this is yet to come. According to cnn.com there is nothing easy or simple about the Stimulus plan and implementing it will be challenging:

“Far more difficult will be gauging whether the legislation’s trademark initiatives – which include improving physical infrastructure, investing in energy projects and providing financial relief for families by way of tax cuts and increased government benefits — are really doing the trick.

The first step is to stem the recession in the near term. In the longer term it will be to put the economy on a path to sustained growth and greater efficiencies in energy production, health care and other areas.

So how will we know if it’s working? What will be the signs? The president and economists say the biggest marker will be an improvement in the jobs picture.

“That’s bottom-line number one, because if people are working, then they’ve got enough confidence to make purchases, to make investments,” Obama said last week before the bill’s passage. “Businesses start seeing that consumers are out there with a little more confidence, and they start making investments, which means they start hiring workers. So step number one, job creation.”

The official benchmark estimates from the White House: 3.5 million jobs will be created or saved over the next two years, and over 90% of them will be in the private sector.”

To review, the main parts of the plan that affect homeowners or mortgage customers are:

• An $8,000 tax credit for first-time home buyers that will not have to be paid back. That’s right. It’s non-refundable! This is an big change and improvement over the current $7,500 tax credit approved last year, which had to be paid back gradually over a period of 15 years and was set to expire in July 2009. Here’s how the $8000 tax credit works : First-time home buyers: (defined as anyone who hasn’t owned a home for at least three years) who purchase a home between January 1 and December 1, 2009 will receive a refundable tax credit of up to $8000. The tax credit amount is based on 10% of the purchase price of your home, up to $8,000. In other words, homes valued over $80,000 will only get the max $8,000 tax credit. The credit doesn’t have to be repaid, but homeowners much keep their homes for at least 3 years to qualify.
• Limits on reverse mortgage HECM loans will rise to $625,500 until the end of 2009 – at which time the new limit will be reviewed and possibly extended (but it’s not guaranteed). The current limit (until tomorrow) is $417,000, so this opens up reverse mortgage options for many seniors.
• Rising conforming loan limits (that sounds like a tongue twister) to $729,750 in high-cost areas for FHA loans. That means that homes in areas with more expensive real estate can continue enjoying the benefits (low mortgage rates with easy qualifying) of FHA loans.
• Financing for states for construction and rehabilitation of low-income housing.
• Funding for rural housing loan programs, with up to 100% financing.
• Grants for energy efficient housing retrofits, and tax credits for energy efficient upgrades expanded through 2010.

That’s all there is as of now. The world is watching. Let’s hope they enjoy what they see!

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first time home buyer tax credit

Stimulus Plan Includes Homebuyer Incentives

As the stimulus package passed the house today and headed to the senate, first-time homebuyers are poised to benefit at the bill’s expected passing.

According to a summary of the bill’s provisions, the bill includes an $8,000 tax credit for first-time homebuyers that will not have to be paid pack. This is an improvement over the current $7,500 tax credit approved last year, which had to be paid back gradually over a period of 15 years and was set to expire in July 2009. The new tax credit provision will be avaiable to first-time homebuyers (buyers who haven’t owned a home for the past three years) who purchase between January 1, 2009, and December 1, 2009.

While the National Association of Realtors was hoping for more, it was thankful for the extension and expansion of the credit, which is expected to stabilize home values and encourage over 200,000 home sales.

“Eliminating the repayment provision…will help bring buyers to the market and reduce housing inventory,” said NAR President Charels McMillan in a statement released today.

Other bill provisions of interest to homeowners and homebuyers include:

• Reinstating conforming loan limits to $729,750 in high-cost areas for FHA loan guarantees.
• Financing for states for construction and rehabilitation of low-income housing.
• Funding for rural housing loan programs.
• Grants for energy efficient housing retrofits, and tax credits for energy efficient upgrades expanded through 2010.

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