First Time and Existing Home Buyer Tax Credits

Do you qualify?

Frequently asked questions about 2009 Tax Credit

If you are a first-time homebuyer purchasing a home between January 1, 2009 and December 1, 2009, you may be eligible for up to $8,000.00 (couple) or $4,000.00 (married filing separately) tax credit applicable to your 2009 tax bill. This tax credit has some limitations and restrictions.

If you are an unmarried couple buying property and one of you has already owned a home but the other qualifies as a first time homebuyer, you may be eligible for the full tax credit. See the following IRS opinion and consult your tax attorney and/or accountant for further details.

Allocation of Section 36 First-Time Homebuyer Credit Between Taxpayers Who Are Not Married

HUD is currently working to make the tax credit available at closing to be used to pay part of the down payment and closing costs but as yet has not developed the program for use. Your Realtor will know when that happens.

Tax Credit Extended to Include Existing Homeowners

President Obama signed the tax credit extension on November 7, 2009. This extends the existing First Time Homebuyer Credit of $8,000.00 through contracts written before April 30, 2010 and closing before July 1, 2010. If you have not owned a home for at least three years, you may qualify for this credit. There are income restrictions, but the maximum income has increased with this extension. This extension also includes a new Tax Credit for Existing Homeowners. If you have owned your current home for five out of the last eight years, you may be eligible for a $6,500.00 credit if you sell your existing home and purchase a new home. Again, this credit will be available for properties under contract by April 30, 2010 and closed before July 1, 2010. The timing of this tax credit should allow the housing market to continue to recover through the winter months. It will require a change of mindset for many homeowners. If you wait until Spring, you may be too late to take advantage of this windfall. If you or someone you know has been thinking of making a move, call .me and I will help you realize your dream while taking advantage of the credit.

Ask your Realtor how you can use the tax credit to help you make your home-buying dream come true.

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