Get The Facts $8,000 First Time Homebuyer Tax Credit Extended Until April 30, 2010
(source NAHB)
- $8,000 is for first time home buyers only. To qualify as a first time home buyer, you may not have owned a residence during the 3 years prior to the purchase.
- Credit does not have to be repaid.
- The tax credit is equal to 10% of the purchase price up to a maximum of $8,000 and applies to homes priced at $800,000 or less.
- The tax credit applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. In cases where a contract is signed on April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
- For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
- For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
$6,500 Move Up/Repeat Home Buyer Tax Credit - To be eligible to claim this tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10% of the home's purchase price up to a maximum of $6,500.
- It is available for the purchase of principal homes costing $800,000 or less.
- The tax credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full credit.
Other News- Fed expects mortgage rates to start moving higher after April 1, 2010.
- Popular homesite websites are reporting a decline in the number of sellers who reduced asking price at least once, but expect this number to increase again once the home buyer tax credit expires.
Reasons To Buy A Home Now
(from an article on MSN Real Estate) With the economy in such a tenuous state, many of you are afraid to buy a home. But if you are qualified to buy a home, buying to improve your quality of life, and if a purchase makes sense in your situation, this market gives you the negotiating power to get what you are looking for at a great price. Here's why: 1. Affordability - The National Association of Realtors' affordability index showed that homes were more affordable than at any other time since the group started the index in 1970. The index shows the relationship between home prices, mortgage interest rates and family income. 2. You've Got A Lot to Choose From - Large inventories for both new construction and existing homes have driven down prices and driven up the angst of sellers. If you delay purchasing until prices have hit "bottom", you risk getting the best price since you won't know the bottom has been reached until prices begin to go up. 3. Builders are Offering Big Discounts - Home builders have gotten more aggressive with their pricing, are offering large discounts and the homes are under warranty and, in some cases, so are the appliances. 4. Mortgage Rates are at Historical Lows - Mortgage terms have a big impact on affordability and your monthly payment, more so than selling price. Check with your local lenders or your real estate professional for lender information. 5. Federal Tax Credit - Has been extended and now also includes a provision for repeat home buyers. (See above) But remember, the tax credit expires April 30, 2010. Now Really Is A SMART Time To Buy! Local Mortgage Lenders Vince Bacchi, Senior Loan Officer
First Brunswick Mortgage, Shallotte, NC
910 352 6562 mobile
910 842 1658 office
910 842 1659 fax
VBFirstBrunswick@aol.com
www.firstbrunswick.com
Robert C. Hanania, Home Loan Consultant
Bank of AmericaCountrywide Home Loans, Sunset Beach, NC
910-200-6788 mobile
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