Mortgage News

FIRST TIME HOMEBUYER CREDIT - 6 THINGS TO KNOW....


First time homebuyers who purchase a home by 12/01/2009, may be eligible for a generous 2009 tax credit!

1. First time homebuyer is someone who hasn't owned a principal residence for 3 years before buying a house.

2. The tax credit is equivalent to 10% of the purchase price of the home, capped at $8,000.00.

3. Only those who purchase a home between 1/1/2009 and 12/01/2009 are eligible for the credit.

4. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit ($150,000 for married couples).

Those earning more than these thresholds may be eligible for reduced credits.

5. Because the tax credit is refundable, qualified buyers can take advantage of it even if they don't have much tax liability.

6. Buyers who own their home for at least 3 years do not have to repay the tax credit once the home is sold. If they sell the home before then,

they will have to return the credit to the government (exceptions for certain cases, such as death or divorce).



Now more than ever is the time to buy.....If you are not a first time homebuyer, please pass this on to someone who is!