More Details on $8,000 tax Credit

Updated information on tax credit extension until June 30, 2010

Details of the first time home buyer tax credit have been released. This is probably the most positive piece of news in our industry in years!!! Here are the highlights:

• The Tax Credit is the lesser of 10% of the purchase price or $8000
• The Tax Credit is “real money” that you get as part of your tax refund
• This credit does not need to be repaid if you live in the home for 3 years (the big difference from the previous version)
• A First Time Home Buyer is defined as someone who has not owned a Primary Residence in the past 3 years
• Once you marry a homeowner you automatically become a homeowner regardless of who is on the title and the loan
• The credit begins to “phase out” for Singles with income between 75k and 95k and Married between 150k and 170
• If Mom and Dad (that own a home) Co-Sign for their child to help him qualify, the child can still take the Tax Credit. Perfect for an FHA loan!
• Buyers can take the credit on their 2008 Tax Return if they purchase prior to filing their 2008 Taxes. If you have already filed, you are allowed to file an amended 2008 return to get the credit
• This Tax Credit is a Tax Related issue and therefore you should consult a tax professional for advice.

A good website for info is www.federalhousingtaxcredit.com