irst-Time Buyers Have Until April 2010 for $8,000 Tax Credit

 If you can afford to purchase a home, it's always the right time to buy — regardless of the market. Now, however, home buyers actually have extra reason to consider home ownership: lower prices, anxious sellers, reasonable interest rates and best of all, the wildly successful $8,000 tax credit for first-time homebuyers has recently been extended, and the program has been expanded to include existing homeowners. In addition, income limits and credit opportunities have been increased.

 With the $8,000 tax credit for new buyers, and up to $6,500 available for current homeowners who have lived in their primary residence for at least five of the past eight years, there is something for everyone. But act now — these amazing opportunities are only good until April 30, 2010.

 Homebuyer Tax Credits in Review

 The tax credit creates a near-perfect opportunity for first-time home buyers and existing first home owners. Who qualifies? How does it work? Here are a few frequently asked questions and helpful sites with more information from the National Association of Home Builders:

• A "first time home buyer" is any person who has not owned a principal residence in the past 3 years prior to the purchase.
• To qualify the sale of the home must be purchased by April 30th, 2010 and must close by June 30th, 2010.
• In Hawaii, it will typically take 60 days to close a sale, if all goes right. Make sure to give yourself a good buffer, just in case things come up to push it back.
• The tax credit can be applied to your 2008 or 2009 tax returns.
• Any type of home qualifies for this program, even newly built ones!

The newly passed legislation (in effect Dec. 1, 2009) brings with it a few additional items of note:

• If you are a qualified first time home buyer who is currently in the process of purchasing, you do not need to worry about the previous Nov. 30th deadline.
• Buyers will have to purchase their home by April 30th, 2010, but will have an additional two months following that (until June 30th, 2010) to close.
• Existing homeowners who have lived in their primary residence for at least five of the prior eight years and whose homes are worth $800,000 or less are now eligible for up to a $6,500 credit.
• The income limit for qualifying buyers has also been increased. Limits for a single purchaser have gone from $75,000 to $125,000 and for couples, from $125,000 to $225,000. Don’t fit into these two groups? Credits are also available on a diminishing basis for those above these particular income limits.

For more in-depth information about the first-time buyer credits available, visit this NAHB sponsored site.

 

To begin your property search and/or find a real estate professional who can help determine what price range you qualify for CLICK HERE.