Posted by: Roby Robertson | January 19, 2009

Lake Norman Area Real Estate: First Time Home Buyers Tax Credit

I know there are buyers sitting on the fence when it comes to buying a new home. I also feel that there is some confusion when it comes to the First Time Home Buyers Tax Credit!

For this reason,the National Home Builders Association has launced a website explaining the tax credit. The website is named: Federal Housing Tax Credit For First Time Home Buyers.

Here some quick facts:

  1. The tax credit is for 10 percent of the purchase price, but not to exceed $7,500.So if you purchased a home that cost $65,000 (65000x.10), you credit would be $6,500, but if you purchase a home that costs $200,000, your tax credit would be $7,500, as it is the maximum credit
  2. Single family homes, including condos & co-ops, are eligible
  3. You receive the $7,500 credit on your tax return in the form of a refund, not when you purchase the home.  Therefore, if you purchase a home and received the full $7,500 tax credit, and your tax bill for the year was $2,000, you would receive a refund of $5,500.
  4. The income limit is $75,000 for individuals and $150,000 for a joint return.Above this, the credit begins to phase out in proportion to one’s income.
  5. Only individuals who have not owned a home as a primary residence in the 3 years previous to the purchase qualify. A primary residence is identified as a home that someone lives in greater than 50 percent of a year. But if you own a home that you rent out in one city, but you have rented a home or apartment in another location for the past 3 years, you may qualify.
  6. The credit is technically a 15 year interest-free loan, as it must be repaid over a 15 year period, with each yearly payment being just over $500, but no interest is charged. If you sell the home before then, you will have to payback a portion, but the way this is going to take place is not yet for certain. This is a very new idea, so all of the logistics and rules haven’t been worked out yet, so make sure you consult someone who really understands the system, if you think you may sell the home.
  7. This is on houses purchased on or after April 9, 2008, but before July 1, 2009. This bill passed into law on July 30, 2008, but it has a retroactive effect on those home purched on or after April 9, 2008.  So if you purchased a home between April 9, 2008 and July 29, 2008, then the tax credit still applies to you, given you meet the other qualifications.

For First Time Home Buyers or those meeting the requirement this could be an opportunity of a lifetime.

If you are interested in learning more, please contact your Lake Norman Area agent at 704 451 7051 or by email.

See Also:

Be The First To See Lake Norman Hot New Listings as soon as they become available.

What would my Lake Norman Home Sell For?

Lake Norman Area No Hassle Buyer Program

Why Lake Norman is such a great Destination

Roby Robertson

 

Saving My Clients Thousands

Broker/Owner

 

Real Living In Style
Davidson NC

 

roby.robertson@realliving.com
www.LakeNormanRealLiving.com

 

Ph: 704 451 7051
Fax: 704 892 9766

Committed to Saving My Clients Thousands When Buying and Selling Real Estate


Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: