Register Real Estate Advisors

The $8,000 First Time Home Buyer Tax Credit will be ending soon.  You must be under contract by the end of April to qualify for the tax credit and must close on your home by the end of June.  To qualify, the purchaser(s) may not have owned a primary residence in the last three years.  It does not have to be a resale home, you may purchase from a builder.  You should use a Realtor even when you purchase from a builder.  It’s free for buyer’s to use Realtors and your Realtor will be representing you and looking out for your best interest.  You can receive the maximum $8,000 tax credit if you are single with an income up to $125,000 or married with an income up to $225,000.  The amount of the tax credit decreases as home buyers income approaches the maximum limit.  Homebuyers earning more than the maximum qualifying income are not eligible for the credit. 

There is an existing home buyer tax credit currently in place for $6,500.  To use this tax credit you must sell your current primary residence that you have lived in for atleast five consecutive years and purchase another primary residence.  If you don’t want to sell your current home, but have lived there for five years and now want to move to a new primary residence, you can still qualify for the tax credit.  There are some income requirements, so check with your accountant to be sure you qualify. 

 Neither of these credits have to be repaid as long as you live in the new primary residence for atleast three years. 

 For Active Duty Military personnel living overseas during any part of this tax credit are still eligible to take advantage of the tax credits until April 30, 2011. 

 To take advantage of these tax credits call me today because time is running out to qualify.  For additional questions about the tax credit you can contact a tax professional or the IRS at 800.829.1040.

1.  They don’t ask enough questions of their lender and miss out on the best deal.

2.  THey don’t act quickly enough to make a decision and someone else buys the house.

3.  They don’t find the right real estate professional who is willing to help you through the homebuying process.

4.  They don’t do enough to make their offer look good to a seller.

5.  They don’t think about resale before they buy.  The average first-time buyer only stays in a home for four years.

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NEW YORK (CNNMoney.com) – The U.S. Department of Housing and Urban Development (HUD) announced Friday that its $8,000 incentive for first-time homebuyers has been tweaked from a refund at tax time to cash made available for assistance on down payments or closing costs.

The mechanics of the new program, according to National Association of Home Builders economist Robert Dietz, allow lenders to purchase tax credits from the buyers and then collect the rebate from the IRS.

Homebuyers must still come up with the Federal Housing Administration’s mandatory down payment of 3.5 percent on their own, but they can use the tax credit to lower their principal balance and save on monthly payments.

“Families will now be able to apply their anticipated tax credit toward their home purchase right away,” said HUD secretary Shaun Donovan. “What we’re doing will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”