How is this possible, you ask?
Here are the basics:
- First-time home buyers only on a primary residence (can not have owned a home in the past 3 years. If married, this applies to both spouses.)
- The tax credit does not have to be repaid (as long as you own your home for 3 years).
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum amount of $8,000.
- The credit is only available for homes purchased on or after January 1, 2009 and prior to December 1, 2009. (if you purchased a home between April 1, 2008 and December 31 2008, don't despair! You may still qualify for the previous $7,500 tax credit.
- Single taxpayers with incomes up to $75,000 (modified adjusted income) and married couples with incomes up to $150,000 (modified adjusted income) qualify for the full tax credit.
- Qualifying properties include Single Family Detached Homes, Attached homes such as Condos & Townhomes & Manufactured Homes.
Here is an example of how the tax credit works:
If a qualified home buyer expected, notwithstanding the tax credit, a federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Now, suppose that the taxpayer qualifies for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed) from the IRS.
This is an amazing deal and should not be overlooked. Not only are interest rates extremely low, house prices are stable or dropping in certain areas, so now is a great time to buy.
If you are interested in finding out the difference between renting & buying, send me an email and I'll mail you a brochure "Why Rent When you Can Buy?" developed by the National Association of Realtors. Be sure to give me your name, email address and mailing address. Include your phone number if you have specific questions or would like to Pre-Qualify for a Mortgage (that is one of the first steps on the way to Home Ownership...)
Thinking of buying your first home now? While we are located in the Austin and Highland Lakes areas, we have a large nationwide network of Professional, qualified agents and we can refer you to a great agent. Just send me an email or give me a call!
Don't wait, this great deal is good for 2009 only!