What’s a First-Timer?
June 26th, 2009 - Linda Miller
By now everyone has heard of the $8,000 first time home buyer tax credit. Definitely it is a wonderful opportunity for some to become home owners. There are multiple web sites giving the details but I will give you a quick run-down.
It is interesting how quickly these guidelines have changed, with some agencies trying to make the credit dollars available at the time of the purchase to use for down payment obligations. My understanding is that option has now been completely eliminated. Stay tuned – anything can change!
Purchasers claiming the credit cannot have owned a home within the last three years – that constitutes a “first time” home buyer. The tax credit is equal to 10% of the home’s purchase price – up to $8,000. There ARE income limits. After complying with all the requirements, claiming the credit is as simple as filing a tax return. (Did I say “as simple as”?) Any home that is considered to be the principal residence will qualify; houseboats, townhouses, condos, mobile homes, etc. Purchases from January 1, 2009 to December 1, 2009 can qualify. Let’s see, can I anticipate a “rush to purchase” in November? My advice, don’t wait. Lenders are facing new guidelines in July that could extend the closing period by weeks.
Act now – this happy little benny won’t last long!!
Borrowers should always consult their tax advisor regarding any tax incentives.