Homebuyer Tax Credit of $8,000!
The $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes an $8,000 tax credit to first time homebuyers. The good news about this credit is that it does not have to be repaid like the previous $7,500 tax credit required. Here are a few points to remember about the tax credit:
- The credit applies to first time homebuyers. To qualify as a first time homebuyer you need to be someone who has not owned a primary residence in the past three years. If you have owned an investment property but not a primary residence then you will still qualify.
- The credit only applies to first time homebuyers who purchase a home between January 1, 2009 and November 30th, 2009. So, if you made a purchase as a first time homebuyer anytime so far this year you qualify to receive the credit!
- There are income limits on who can receive the credit. As a single buyer your modified adjusted gross income must be less than $75,000 and as a married couple the limit would be $150,000. People who make over these amounts may qualify to receive a partial credit.
- In order to not have to repay the credit you must own your home for at least 3 years.
- Even if you do not owe much in taxes you can still take advantage of the credit since you are able to receive it as a tax refund!
- The tax credit is 10% of the purchase price up to $8,000. Therefore any home purchased over $80,000 will receive the full $8,000 tax credit.
I do not know of a time that has been better than now for a first time homebuyer to purchase their first home. Even without this $8,000 tax credit the timing would still be perfect with the low interest rates available and low home prices. Now with the $8000 tax credit it almost does not make sense not to purchase a home!
If you would like more information about the tax credit, mortgage options, and what homes are on the market please give us a call at 919-556-6459 or email us at alice@aliceray.com. The Alice Ray Team has helped first time homebuyer’s for over 30 years purchase their new home and have the knowledge you need to make sure you make the best choice for you and/or your family. Start your home search today in the Raleigh, Wake Forest, and surrounding areas by clicking here.
Are you a current homeowner in the Raleigh, Wake Forest, and surrounding areas who is wanting to take advantage of the low interest rates and low home prices? Call us to provide you with a free Comparative Market Analysis on your home. Now may be the perfect time to put your home on the market for a potential first time homebuyer to purchase and then you can move up and buy that bigger home! Email Alice today at alice@aliceray.com or give us a call at 919-556-6459.