I’m sure by now you’ve heard about the First Time Home Buyer Tax Credit. But there are still a lot of questions and confusion out there. Some wonder who is eligible, what are the requirements and how it can be used. So here is an honest attempt to simplify it by sharing what I know.
First Time Home Buyers Tax Credit FAQ’s
Who is eligible? First time home buyers who purchase homes between January 1, 2009 and December 1, 2009. By “First Time Home Buyer” they mean the purchaser or his/her spouse may not have owned a residence for the 3 years prior to the purchase.
How much is the credit? $8,000 is the maximum credit allowed and is determined by two contributing factors.
- The credit is equal to 10% of the purchase price of the home up to $8,000.
- Buyers Income- Single Buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit.
Do I have to pay it back? No! As long as you occupy the home for 3 years or more. However if the property is SOLD during the 3 year period than the credit will be recouped at the sale.
Which properties are eligible? The 2009 First Time Home Buyers Tax Credit may be applied to primary residences only.
Are there any income requirements? The credit decreases for single buyers who earn between $75,000 – $95,000, and $150,000 – $170,000 for those filing jointly. Home buyers earning more than the maximum qualifying income are not eligible for the credit.
Time Is Running Out! If you know of anyone who can take advantage of this incredible offer, please send them this page. Interest rates are historically low and there are lot’s of inventory homes to choose from!
Happy House Hunting!
I have provided a link here to David Bach’s video on the First Time Home Buyer Tax Credit. It is part of a new series, “smart homeowner”