Congress recently approved a tax credit for first-time home buyers that can be worth up to $7,500. Another welcome provision of the Housing and Economic Recovery Act of 2008. Often 1st time home buyers are challenged to save enough money for a down payment and closing costs, which is around 7% on an aggressive program. Now possibly $7500.00 of that seed money can come from the Federal Government via the IRS.
As long as you buy a home between April 9, 2008 and July 1, 2009 you are eligible. When you take advantage of this, Uncle Sam will issue you 10% of the purchase price.The tax credit received will act like a 0% interest loan that is paid over 15 years. So see the following example:
| Home Purchase Price: | $300,000 |
| 10% of Purchase Price | ($30,000) |
| Maximum Tax Credit | $7500.00 |
| Net Purchase Price | $292,500 |
Then starting in year 2, the tax payer will begin adding $500 per year for 15 years on their tax return.
Also investors, no 2nd homes or rental properties qualify for the program.
Again readers, if you're still doing this research without any help from a REALTOR, feel free to call us or any one of our REALTOR colleagues to discuss your options and to learn what the "real" real estate market has to offer.
EXPIRES AFTER JUNE 30, 2009 SO PLEASE TAKE ADVANTAGE OF THIS ASAP.
Direct link to IRS information about the First-Time Buyer Tax Credit.
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