The cash for clunkers program got a lot of publicity about its end date. However, there is a great government program that few people know about that is still available.
Yes, we are talking about the $8,000 first time homebuyer tax credit.
This great program begun under the last days of the Bush administration's Stimulus plans as a repayable $7,500 credit.
With a changing economy and market, it grew into a $8,000 non-repayable credit. The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.
That’s right: First Time Homebuyers - FREE MONEY, JUST FOR YOU!
Who Qualifies?
First-time home buyers who purchase homes between Jan. 1, 2009 and Dec. 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.
Why bring this up now? Well, with the end of the year fast approaching - in a few weeks we will be well into the last quarter of the year - and transactions taking many times longer to close than usual (sometimes due to financing delays) there is little time left for first-time homebuyer’s to purchase a property and be eligible for the credit.
(With the average short sale or bank owned transaction taking around three months to close the time really is now!)
FHA financing will even allow this credit to be used as downpayment funds. The IRS has published a helpful flyer about the program available here.
Friday, September 04, 2009
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1 comment:
Every investor must start-up a plan before heading up on buying a property. Learning the basics of real estate is essential rather than visualizing the money aspect. Listen to skilled professionals like bankers, estate agents, home inspectors, etc., they most likely know the latest trend.
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