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Answers (10)
- Michael Roberts, "Michael Roberts"
- Contributions:16
Hi Lespier,
To help everyone better understand the extended and expanded home buyer tax credit, here are some highlights of the changes.
Who can claim the credit?
"First-time home buyers" who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. 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.
For current homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years.
Another key point is that the existing home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at "move up" buyers.
How much is the credit and what are the income limits?
The maximum allowable credit for first-time home buyers is $8,000 or 10% of the sales price, whichever is less. For current homeowners, it is $6,500 or 10% of the sale price, whichever is less. Under the extended home buyer tax credit, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum credit.
The credit decreases for single buyers who earn between $125,000 and $145,000 and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit deceases 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.
What are the deadlines for qualifying for the credit?
Under the extended home buyer tax credit, as long as a written binding contract to purchase a home is in effect on April 30, 2010, and the deal is closed by July 1, 2010, one can claim 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 this three-year period, the full amount of the credit will be recouped on the sale. Another provision of the law waives the recapture provisions for service members who receive orders that require them to move.
Are there any other critical provisions?
-There are three provisions people should be aware of:
-There is an $800,000 limitation on the cost of the home
-The purchaser must be at least 18 years old on the date of purchase
-For a married couple, only one spouse must meet this age requirement and dependents are not eligible to claim the credit
http://michaelrobertshomes.com/2009/11/09/first-time-buyer-credit-has-extras/
- Carl Ashton, "Carl Ashton"
- Contributions:86
First-Time Home Buyer Tax Credit - The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
We will ammend your 2008 Taxes for free when you purchace a mortgage from America Home Key so you do not have to wait till you file your 2009 taxes.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
We will ammend your 2008 Taxes for free when you purchace a mortgage from America Home Key so you do not have to wait till you file your 2009 taxes.
- Peter McGahan, "YourHomeinStPete"
- Contributions:18
Here is the link to the latest information on the First Time Home Buyer information from the National Association of Realtors:
http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit
http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit
- Kimberly Brandon, CRS,GRI,SFR, "KimberlyBrandon"
- Contributions:260
Great post Lisa - Lespier you should consider contacting Lisa - she clearly has the knowledge for your area.
- Lisa Reeves, "Lisa Reeves"
- Contributions:191
In Pinellas County you have a few options for First Time Buyer Program. The City of St. Pete has a Housing and Community Development area that handles their home buyer programs.
http://www.stpete.org/housing/
There is down payment assistance which is a non-amortizing loan to help with closing costs and down payment. There is also Neighborhood Stabilization Grant money which will rehab foreclosed homes for resale to under 120% or 80% of median income - please see HUD.gov for area median income information. There are also projects such as the one I have in Tampa that received City/State and Federal grants to build workforce housing.
At the federal level is the 8K first time homebuyer credit. See the website for all the qualifications.
http://www.federalhousingtaxcredit.com/2009/index.html
http://www.stpete.org/housing/
There is down payment assistance which is a non-amortizing loan to help with closing costs and down payment. There is also Neighborhood Stabilization Grant money which will rehab foreclosed homes for resale to under 120% or 80% of median income - please see HUD.gov for area median income information. There are also projects such as the one I have in Tampa that received City/State and Federal grants to build workforce housing.
At the federal level is the 8K first time homebuyer credit. See the website for all the qualifications.
http://www.federalhousingtaxcredit.com/2009/index.html
- sunnyview
- Contributions:25139
There are lots of sites that are good for explaining the first time buyers credit. This one here is a FAQ that answers most people's basic questions about it. To be eligible, you must fit the income limits, not have owned a house for the last 3 years and not be buying from a close relative. Once you file your tax forms, the credit money comes back to you in the form of a tax refund check for an amount of 10% of the purchase price up to $8000. Check out the FAQ link and see if it has the info that you want.
- Randolph Leslie Smith, "RandolphLSmith"
- Contributions:156
As of today, there is still no way to use the $8000.00 tax credit for first time buyer as the down payment.
FOR EXAMPLE:
If Johnny can borrow it from mommy, he can use mommy's $8000.00 as a down payment and promise to pay mommy back when he gets his tax return, but mommy could get burned, because Johnny will get the $8000.00 check from the IRS in his name, and might tell mommy he never got it, for whatever reason / lie he can make up. Bad Johnny.
Lets hope it does not work out this way for anyone nice enough to loan the $8000.00 to a first time buyer. BEWARE: it will be as described, a completely unsecured loan.
FOR EXAMPLE:
If Johnny can borrow it from mommy, he can use mommy's $8000.00 as a down payment and promise to pay mommy back when he gets his tax return, but mommy could get burned, because Johnny will get the $8000.00 check from the IRS in his name, and might tell mommy he never got it, for whatever reason / lie he can make up. Bad Johnny.
Lets hope it does not work out this way for anyone nice enough to loan the $8000.00 to a first time buyer. BEWARE: it will be as described, a completely unsecured loan.
- Kimberly Brandon, CRS,GRI,SFR, "KimberlyBrandon"
- Contributions:260
I've got to disagree with cwoodward. Many cities and counties have local first time home buyer programs - so maybe they are talking about one that is not available in my area - but the one program that is available state wide is USDA rural development program - here is the link that will walk you thru eligibility for you and the property
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
There are local programs - SHIP is one offered in Bay County - this is for first time home buyers only And you have to apply directly with them not a local lender. USDA many of the local lenders are qualified to originate.
There are two sides to USDA too. The website will help you a lot. For other programs you really need to be speaking with a loan officer. Where do you do your checking - check with their mortgage department.
Hope this helps
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
There are local programs - SHIP is one offered in Bay County - this is for first time home buyers only And you have to apply directly with them not a local lender. USDA many of the local lenders are qualified to originate.
There are two sides to USDA too. The website will help you a lot. For other programs you really need to be speaking with a loan officer. Where do you do your checking - check with their mortgage department.
Hope this helps
- cwoodward70
- Contributions:1
If you have not purchased a home in the past 3 years you qualify. Some programs actually let you use this credit in the down payment (lender gets the 8K) otherwise, you can amend your 2008 taxes for the credit.
Apparently you can own a home (purchased more than 3 years ago) and as long as this new home is the primary residence, you can qualify.
Apparently you can own a home (purchased more than 3 years ago) and as long as this new home is the primary residence, you can qualify.
- Kelly Vondra, "kvondra"
- Contributions:1
Are you talking about the Stimulus? Obama stimulus? $8,000 credit?
How dose the frist time buyer program works
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