Monday, November 9, 2009

Homebuyer Tax Credit - extended



Federal Housing Tax Credit
courtesy of NAHB


$8,000 First-time Home Buyer Tax Credit at a Glance

* The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
* The tax credit does not have to be repaid.
* The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. * The tax credit applies only to homes priced at $800,000 or less.
* The tax credit now applies to sales occurring on or after January 1, 2009 and 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 homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
* For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.


The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

* To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
* The tax credit does not have to be repaid.
* The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. * The tax credit applies only to homes priced at $800,000 or less.
* The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by May 1, 2010, the home purchase qualifies provided it is completed prior to July 1, 2010.
* Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

3 comments:

Adrienne said...

Yep, it's true: I started my own blog that explains exactly what the new tax credit means. You should check out this video, narrated by NAHB's cheif economist. It explains the tax credit thing a bit better: vokshori.wordpress.com/2009/11/18/tax-credit-explained/

Also, if you want to talk to an expert attorney in loan modifications, contact my boss, Stephen Vokshori at 213-785-5366 or visit www.voklaw.com to see if you qualify for a loan modification.

Christopher said...

Hi Jason,

How difficult is it to get a mortgage to purchase a high-rise condo in Charlottesvile?

Chris

Jason said...

Christopher,

Thanks for your question.

It's more difficult to get a mortgage loan on a high or low rise condo than a single family home, but it's still possible. There are a number of additional factors that must be considered, particularly regarding the condo project.


I'd be happy to discuss it in further detail if you want. Feel free to email, IM or call me.

-Jason