Real Estate Information Archive

$8,000 Home-Buyer Tax Credit Extended!

Tuesday, November 10, 2009

by Stephanie Dawson

On Friday, November 6, 2009, President Obama signed the extension/expansion of the first-time home-buyer tax credit. Under the old plan, the $8,000 tax credit was set to expire at midnight on November 30, 2009. The revised extension pushes this deadline out until June 30, 2010. Home-buyers must be in a contract to purchase a home by April 30, 2010 and then they have 60 days to close on the home.

In order to assist a wider group of home-buyers, the tax credit was expanded to include buyers earning up to $125,000 annually (if filing single) or up to $225,000 if filing taxes as a married couple. This tax credit not only for first-time buyers, but now includes folks that have owned and occupied a home for at least five of the past eight years. "Move-Uppers" can claim a $6,500 tax credit if they close on the purchase of a new home by June 30, 2010.

There is a cap on the purchase price of a home this time: the home must be purchased for $800,000 or less if the buyer wants to receive the tax credit. More information can be found at CNN Money and there's a really good FAQ section and explanation at the REALTOR webite (click FAQ). The IRS has posted an article about the expanded tax break. A really good FAQ was published by the National Association of Realtors: Homebuyer Tax Credit Changes and they also posted a comparison of the changes in the Homebuyer Tax Credit.

Run Out - Do Not Walk - and Buy a House!

Monday, September 07, 2009

by Stephanie Dawson

If you are house-hunting or know someone who is, please let me know if I can help. I have an exclusive list of BRAND NEW HOMES that are being offered for ZERO down at just 4.5 percent interest on a 30 year fixed mortgage. There is NO mortgage insurance for homes priced up to $600,000! These homes are all over Western Washington, and many have sold but there are still plenty that are still available. Please call me if you would like to discuss the homes on this list.

The clock is ticking and soon the first-time home buyer tax credit will come to an end. This tax credit expires November 30, 2009, and that is the Monday after Thanksgiving. If you are thinking of buying a home, now is the time!

In order to qualify for the tax credit, you must close on your new home by the end of November – better yet, I recommend you close on your home BEFORE the Thanksgiving holiday week. With all of the anticipated sales closing in November, I predict a bottleneck effect and think it would be wise to set a closing date of mid-November or sooner, in case there are any hiccups or delays. While a typical transaction can take 35 to 45 days to get from an accepted offer to closing, it is anticipated that there will be a large increase in transactions as the expiration date draws near. Act now to allow yourself enough time to have the transaction processed and through closing so you can take advantage of the $8000 tax gift/credit.

If you are thinking of buying a home, it would be best to make an offer by the end of September. Don’t miss out on low interest rates, a great selection of homes, affordable prices, and the tax credit.

House of Cash

Claim your $8,00 tax gift NOW and use it for your down-payment!

Learn more about the first-time home buyer tax gift.

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The MODIFIED 2009 First-Time Homebuyer Tax Credit Explained

Friday, February 20, 2009

by Stephanie Dawson

This has been an interesting week in government and real estate! If you or someone you know is a first-time home buyer or a renter that has not owned a home in the last three years (i.e. you may have owned a home in the past), you most-likely would qualify for this revised first-time homebuyer tax credit. I realize that it may be confusing because of the way it has been presented by the media, and anytime there is a change in a program, it can cause confusion.

I'm here to help you understand what has changed, as far as first-time homebuying goes. The bottom line: FIRST TIME BUYERS GET AN $8,000 GIFT FROM THE GOVERNMENT. THEY MUST CLOSE ON THE SALE OF THE HOME BY NOVEMBER 30, 2009.

Here is how this modified Recovery Act looks as of February 17, 2009. I recreated this chart, which was put together by the National Association of REALTORS®. If you'd like to save it or print it, I've attached the link to the PDF file here.

First-Time Homebuyer Tax Credit (February 2009)
FEATURE	CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2009	REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
AMOUNT OF CREDIT	Lesser of 10 percent of cost of home or $7,500.	Maximum credit amount increased to $8,000.
ELIGIBLE PROPERTY	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.	No change. All principal residences eligible.
REFUNDABLE	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	No change. Purchasers will continue to receive a refund for unused amount when tax return is filed.
INCOME LIMIT	Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).	No change. Same income limits continue to apply.
FIRST-TIME HOMEBUYERS ONLY?	Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.	No change. Still available for first-time purchasers only. Three-year rule continues to apply.
REVENUE BOND FINANCING	No credit allowed if home financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
REPAYMENT?	Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1, 2009 and before December 1, 2009!
RECAPTURE	If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.	If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
TERMINATION	July 1, 2009, but note program changes for 2009.	December 1, 2009
EFFECTIVE DATE	Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.	All revisions are effective as of January 1, 2009.