Taking Advantage of First-Time Buyer Tax Credit
As of April 9th of 2008 the government created a $7500 tax credit for buyers who purchase their first home. This credit is designed to help first time buyers discover a way to get into a home.
When taking into account this credit with low interest rates and low housing prices, if you can, you really should. Here are some items to keep in mind when taking advantage of this credit.
1 - There is a timeframe of when you can take advantage of this tax credit. If you have already bought a home you have to have bought your home after April 9th of this year. If however you have yet to make that purchase, then you have until July of 2009.
2 - You don't have to be a first time home buyer to take advantage of the tax credit. This tax credit is available to buyers who have not owned a home in the past 3 years.
3 - There are limits to a person’s income. In order to take full advantage of the credit you must make less than $75,000 as an individual or $150,000 as a household. However if you earn under $95,000 individually or 190,000 as a household you still can take advantage of the credit at a reduced amount.
4 - The credit will have to be repaid. While this credit may help you buy a home, it is not a free hand out. The payments would be paid in 6.67% increments for 15 years. Payments would start in 2011 and would never exceed $500 per year. Several lenders consider this an interest free loan.
5 - Several loans permit you, the buyer, to get a loan from your parents, family, or long term close friends. This would allow you to use that money as a down. You would then be able to repay your family or friend when you file for tax returns and receive the credit back. Talk with your lender to find out more. Each loan works differently.
6 - Last is that there is no need to "apply" for this benefit. Simply find your home, buy it, and then claim the credit on your tax return when you file. All homes qualify so long as they are your primary residence.
Bottom line is, if you are trying to decide to buy a home and can, this is just another wonderful opportunity for you to make it happen. You have low interest rates, great housing prices, and a tax incentive to back you up should you decide to use it. This is just the right time to buy.
When taking into account this credit with low interest rates and low housing prices, if you can, you really should. Here are some items to keep in mind when taking advantage of this credit.
1 - There is a timeframe of when you can take advantage of this tax credit. If you have already bought a home you have to have bought your home after April 9th of this year. If however you have yet to make that purchase, then you have until July of 2009.
2 - You don't have to be a first time home buyer to take advantage of the tax credit. This tax credit is available to buyers who have not owned a home in the past 3 years.
3 - There are limits to a person’s income. In order to take full advantage of the credit you must make less than $75,000 as an individual or $150,000 as a household. However if you earn under $95,000 individually or 190,000 as a household you still can take advantage of the credit at a reduced amount.
4 - The credit will have to be repaid. While this credit may help you buy a home, it is not a free hand out. The payments would be paid in 6.67% increments for 15 years. Payments would start in 2011 and would never exceed $500 per year. Several lenders consider this an interest free loan.
5 - Several loans permit you, the buyer, to get a loan from your parents, family, or long term close friends. This would allow you to use that money as a down. You would then be able to repay your family or friend when you file for tax returns and receive the credit back. Talk with your lender to find out more. Each loan works differently.
6 - Last is that there is no need to "apply" for this benefit. Simply find your home, buy it, and then claim the credit on your tax return when you file. All homes qualify so long as they are your primary residence.
Bottom line is, if you are trying to decide to buy a home and can, this is just another wonderful opportunity for you to make it happen. You have low interest rates, great housing prices, and a tax incentive to back you up should you decide to use it. This is just the right time to buy.
Labels: credit, First-Time buyer, home buying, tax
posted by Bryan L at
4:03 PM
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