There is nothing I love more in the real estate business than to meet with first time home buyers. Many first time home buyers have done a lot of homework researching homes in there price range and favorite areas. Once I have a chance to sit down with them I can explain to them how the real estate process works and how I can help them and lead them in the right direction.
There is a question that I get asked many times daily and before I can even explain to my clients the importance of a good lender is “How do I get the $8,000 tax credit?”
So I want to explain the $8,000 tax credit for first-time home buyers looking for and hopefully help many of you off the fence and into a new home. This could be the best time ever to buy a home.
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 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.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
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 the three-year period, the credit will be recouped on the sale.
If you have any additional questions please feel free to call me at (801) 830-2030
by Derrick Tornow, Professional Real Estate Agent
Tornows & Associates, Inc.
Utah County Real Estate
Looking for a VA Home Loan? Let Low Va Rates help you by providing you the service you need to get the loan you want.
