Scoop on First Time Homebuyer Tax Credit

Right now there is a “catch” on the First Time Home buyer tax credit of $7,500 $8,000 or 10% of the purchase price-whichever is lower(if home was purchased between Jan. 1, 2009 and Nov. 30, 2009) but hopefully that catch will be alleviated by the stimulus bill that the House of Representatives approved.

The “catch” is that it had to be repaid if you sell before 3 years (except for divorce or death). This applies to the first time homebuyer credit of $7500 if you bought your home in 2008.

There are income restrictions to this, so check with your tax consultant always for the latest interruptions to tax law.

As Realtors, we as a cumulative group at the National Association of Realtors are asking that this tax credit be extended to all home buyers.

Below is a copy of the  First Time Home buyer Tax Credit along with italicized modifications of the bill from the National Association of Realtors.

Stayed tuned for more about the stimulus package and how it will effect the housing. Along with how Obama’s $50 billion plan on ”stemming”  the foreclosures.

Will this “stem” be just modification loans keeping the loan balance the same?

Or will it be the “cram down” with bankruptcy judges reducing the loan amount?

Click if you would like to know how your U.S. Senate Representative voted on the stimulus bill.

*** Another Article for New Home Buyer Tax credit ***

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