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Thursday, August 27, 2009

$8,000 First Time Home Buyer Tax Credit

Don't wait to buy that Viera and Rockledge, Florida home using the benefits of the first time home buyer program because on December 1, 2009, the opportunity will have been missed.

A few questions…

What is the First-Time Home buyer Tax Credit?

•A dollar-for-dollar reduction in what the taxpayer owes in income taxes.

To qualify, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of tax credit, the purchase date is the date when closing occurs.

How much is the new Home Buyer Tax Credit?

•The tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $8,000. For many first-time home buyers, this means the credit will equal $8,000.

Who is eligible for the tax credit?

•A “first-time home buyer” is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

•First-time home buyers purchasing any kind of home—new or resale—may be eligible for the tax credit.

•Taxpayer must meet the annual income requirements.

Does the tax credit need to be repaid?

•No, home buyers will not be required to repay the credit to the government.

Who is it for?

•This tax credit is designed to help make home buying possible for first-time buyers in the United States.

•There are additional incentives in a number of states.

Can the money be used in place of the down-payment?

•On May 29, 2009, the U.S. Department of Housing and Urban Development (HUD) announced a program that allows borrowers to use the first-time home buyer tax credit for a down payment or closing costs on certain FHA-insured mortgages.

If you are a first time home buyer do not let the opportunity get away. The cash for clunkers program is gone. Don’t let this pass you by!

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida. Email me at or call me directly at 321-693-3850.

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