Are You A First-Time Homebuyer?

Wait … don’t answer too fast! Obviously, any individual or couple who has never owned a home fits the straightforward definition of a first-time homebuyer. But, the American Recovery and Reinvestment Act also includes those who have not owned a home in the three years prior to the new purchase closing date.

How Much Can You Get?

The good news is that this is a refundable tax credit valued at 10% of the cost of the home up to $8,000. This means the credit is applied toward your tax liability, not deducted from your income, to reduce how much you owe the IRS for tax year 2009. And, even better, if the credit exceeds your tax liability, you receive the difference as a refund! Maybe best yet, there is no repayment if you stay in the home for 3 years!

Does Your Income Qualify?

Individuals with an adjusted gross income (AGI) of $75,000 or less on their 2009 tax return qualify for the maximum credit. Similarly, joint filers with an adjusted gross income (AGI) of $150,000 or less on their 2009 tax return qualify for the maximum credit. Partial credits apply for individuals earning between $75,001 and $95,000 and for joint filers earning between $150,001 and $170,000. Incomes above these caps do not qualify for the credit.

Don’t Miss The Deadline!

The tax credit is only available to December 1, 2009. If you’re ready to start exploring what you can get for your principal residence money in today’s home and mortgage market, CONTACT ME TO GET STARTED! Together, we can work to find you a home that not only perfectly matches your needs, but also negotiate for one that meets your finances.