The clock is ticking down for first time home buyers. You need to act NOW to make sure that you don’t miss out on the $8,000 from Uncle Sam.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time home buyers from The American Recovery and Reinvestment Act of 2009.
- You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
- Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
- There is NO price limit on the sales price of home.
- Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is $150,000.
- You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for married couples.
- There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
- You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009.
***IMPORTANT: Congress passes tax credit extension. Must have binding sales contract dated on or before April 30, 2010 and close on or before June 30th, 2010.
This is the quick & dirty information that you need right now for the $8,000 Tax credit. For more detailed information you can go HERE.
It is a great time to be a home buyer. This is the perfect time to by a home, especially 1st time home buyers, as long as your job is secure. If you feel safe in your current employment/job, then there are just so many positive reasons to now buy a home. Don’t miss the “gravy train!”
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Buyer’s market
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Really low mortgage interest rates
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High inventory levels. Plenty of home options
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Depressed, low prices (buy low, sell high)
Please contact me if you have more questions or need help.
IMPORTANT: I’m just trying to help the “average Joe home owner” to understand the new $8,000 tax credit. I have to put this” CYA” disclaimer in my post. Please consult a tax professional or accountant for more details and eligibility questions regarding the $8,000 1st time home owner tax credit. I’m not an accountant or tax professional.
Good luck out there!
My Buyer Broker Advocate! 
8 comments
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September 24, 2009 at 11:03 am
Dustin
So I have the one golden question that I have posted to many sites and can’t get a solid answer on: What in the world is taking so long?? I mean this is ridiculous…I filed mine six months ago and nothing. As a matter of fact they are telling me it could be longer if they decide to put it under review. I need to get a job with the IRS because any job where they give you a 16 week deadline to get something done and if you don’t all they do is extend your deadline…that’s the job for me. I got a sneaky suspicion that something had gone bad with this plan. This is starting to sound like the same mess we got in when we started financing people houses when they couldn’t afford it. They need to realize that if you qualify for this credit..then $8000 is a lot of money to you, and you’ve probably put things off or took a mortgage that was more than you wanted because $8000 will solve a lot of problems and pay off a lot of bills. Maybe that’s just me though. Gimme my money Uncle Sam, if I owed you I could be put in jail for not paying, but when you owe me there’s absolutely no care in when I get paid!
September 24, 2009 at 11:17 am
Michael
Dustin, Thank you for your comment. I’m really sorry about your problems with the 1st time home buyer tax credit. I’ve had many, many clients close this year and amend their taxes to receive the $8,000 tax credit. All of my clients have had no problem receiving the $8,000. Our experience has been totally opposite your experience. Most of my clients are amazed at how easy it is to amend their tax return and receive the 1st time home buyer tax credit.
Did you have an accountant or tax preparer help complete your taxes? Was all paperwork and documentation completed correctly?
Have you gone directly to the IRS web site. They have an excellent FAQ’s section dealing with the $8,000 tax credit.
Good luck,
HomeBuyer Advocate Mike
August 28, 2009 at 8:25 pm
bonnie
hi. I was in a rental that went into foreclosure and had to move. I am on an owner contract on a mobile home its my first purchase. Do I qualify? my income does.
August 12, 2009 at 5:20 pm
Martha
My husband purchased a home way before we ever met and the house is in his name only. We are looking to sell his house and buy a new one. If I put the house in my name only, do we qualify for the first-time homebuyer tax credit?
August 13, 2009 at 7:48 am
Michael
Martha, If you purchase the home just in your name then you would qualify. But, this means getting your mortgage loan ONLY in your name. If your husband is on the mortgage loan and/or he is using the new home as his primary residence then you will not qualify for $8,000 tax credit. I’m sorry. But, you should also check with a an accountant or qualified tax preparer before making any final decisions. Good luck!