Homebuyer Tax Credits:Not Just For First Timers!

Allison Gervais

Make way for the new and improved Homebuyer Tax Credit. It’s not just for first-time home buyers anymore. You may qualify.

by Allison Gervais

The law, which was extended and amended through April of 2010, also includes provisions that expands the number of people eligible for home-buyer credits by increasing the income eligibility limits, extending the time limit for buyers to find homes and adding a $6,500 credit for longtime homeowners .

Who is Eligible for the $8000 Home Buyer Tax Credit?

The rules in 2009 had income limits regarding who was eligible for the $8000 credit.  These were $75,000 for a single person and $150,000 for a married couple.  

Now you can qualify for the full $8,000 first-time home-buyer credit with a single income of up to $125,000 and married income of up to $225,000. Those who earn more will be phased out up to a single income of $145,000 and married income of $245,000. 

More Rules…

1. You must not have had an interest in a principal residence for 3 years prior to purchase.  This means you don’t have to be a first time homebuyer, you just have to have not owned a home in the past 3 years.

2. You must buy, or have a binding contract to buy a home by April 30, 2010.  Escrow  must close by June 30, 2010 and the purchase price may not exceed $800,000.

3. You cannot purchase a home from a relative.

4. You must attach a copy of your settlement statement with your tax return to claim the credit.

5. Buyers also must continue to own this new home for at least three years. If they sell in less time, the credit must be paid back to the government.

Can I Still Get a Credit If I’m Not a First Time Homebuyer?

Yes.  Current homeowners can get a piece of the pie as well with the new $6500 repeat buyer credit.   If you have owned and lived in a home for at least five consecutive years of the last eight years, you could qualify for a $6,500 tax credit, if you buy a new home between now and April 30, 2010.  The same income limits apply and this credit can be useful for those who have already sold in the past few years but have not purchased property yet. 

 With the tax credits, extremely low interest rates and low housing prices, it’s an excellent time to buy property.  The first step is to get in touch with your mortgage broker to find out how much you qualify for and take advantage of this program before it ends!

What other questions do you have about the Homebuyer Tax Credit?

Sharing is caring…so if you enjoyed this article be sure to share it!

Tags: Home, Money, Real Estate

Category: Real Estate