First Time Home Buyer Credit

It’s still a good time to purchase a home… why might you say? In some parts of the state things just seem upside down and certain counties/cities have been hit hard with the housing market decline. However, there is good news in sight. Legislators and Congress have been working very diligently to ensure that the First Time Homebuyer Credit was extended and expanded. The tax credit is available to First Time Homebuyers and Current Homeowners.

It seems that good things are in store even though we are the last two months of 2009. I believe that this credit isn’t something that we will see on the ballet always or permanently in the tax code but it is definitely something that is needed in order to continue to stimulate and jump start the housing market. Especially, since sales historically are sometimes somewhat slower during this season.

A first time homebuyer credit is for all contracts entered into agreement before or on April 30, 2010 and close no later than June 30, 2010. The credit is for 10% of the purchase price up to a maximum available credit of $8,000.

There is also a tax credit program available for those who already own a residence but decide to move to another primary residence. What a great incentive to make a move…The tax credit is up to $6,500 for qualified purchasers who have owned or occupied a residence for a period of five consecutive years during the last eight years. The deadline for this credit is the same as the First Time Homebuyer Credit. In order to qualify for the credit you must enter into a contract on or before April 30, 2010 and it must close before June 30, 2010.

So how do I go about applying for this credit and how can I be sure that I am receiving accurate information? My advice is always to seek a professional in the business. Real Estate professionals can provide you the information but as the consumer you still need to verify with a tax consultant or you can also refer to the link on the IRS website below:

http://www.irs.gov/newsroom/article/0,,id=187935,00.html

Good Luck and happy house hunting. Stay tuned for next month’s tip!!