Bringing the Dream of Homeownership Within Reach
Highlight: You must close on the purchase of your Home no later than July 1, 2010 in order to qualify for the Tax Credit, but MUST BE under contract to purchase the Home by April 30, 2010 !!! Read additional details below!
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 July 1, 2010. 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.
Under the extended Tax Credit, existing Homeowners also qualify for a Tax Credit. This Tax Credit equals a maximum amount of $6,500. These Homeowners must have owned and lived in their primary residence consecutively for 5 of the past 8 years. Existing Homeowners ARE NOT required to sell their existing Homes in order to qualify for the Tax Credit, BUT they must be purchasing the new Home as their primary Residence. The new Home IS NOT required to cost more than the existing Home.
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. Properties that are purchased CAN NOT exceed $800,000 in purchase price!!!
Income Qualifications
The Buyer's income—Single buyers with incomes up to $125,000 and Married couples with incomes up to $225,000—may receive up to 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 $125,000 and $145,000 for single buyers and between $225,000 and $245,000 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 $145,000 for singles and over $245,000 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.
Can the Tax Credit be used to assist with my Down payment?
No. Unlike some States that allow Buyers to use the Tax Credit to assist with down payment Costs when using an FHA-insured Mortgage, Florida IS NOT one of the States with a program in place that allows Buyers to use the Tax Credit toward down payment assistance.
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- Planning to purchase a Short Sale? Review details here.
If you're a First Time Home Buyer in Ft. Lauderdale or elsewhere in South Florida and would like to start your Home search, contact me for details.
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