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$8,000 Tax Credit & $6500 Repeat Buyers Credit
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 2009 Tax Credit for First Time Home Buyers
You have 8,000 additional reasons to be 
this Thanksgiving!!! The $8,000 Tax Credit has been EXTENDED. Buyers now have until April 30th to get a home under contract and until June 30th for the deal to close.
The expanded part is a $6500 maximum tax credit for move-up homeowners who have lived in their current residence for five of the prior eight years.
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You don't have to wait until tax time to claim your credit. You can claim it now and use it for your down payment and closing costs! Frequently Asked Questions
About the Move-Up/Repeat Home Buyer Tax Credit Frequently Asked Questions
About the First-Time Home Buyer Tax Credit Tax Credits at a Glance Details As you may have already heard the Texas Department of Housing and Community Affairs is rolling out their programs to facilitate the use of the First Time Homebuyer Tax Credit for down payment and closing costs. Funds are very limited. There is a total of $7.5 million available under three programs. That's not much to spread around the entire state! ***CALL ME TODAY FOR MORE DETAILS ON HOW YOU CAN TAKE ADVANTAGE OF THESE PROGRAMS.*** Would you like $8000 back on your taxes this year? We've been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? Here's an in-depth look at the $8,000 tax credit for first time home buyers. According to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2010. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since 2006.
The same goes for married tax payers - they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.
Qualifying homes include: New homes Homes that are being re-sold Condos Townhomes The main restriction is that the credit is only for those who buy a home as their primary residence. So investors looking to buy a rental property would not qualify for the credit. However owning a vacation home or a rental property already does not neccessarily disqualify you from taking advantage of the credit (as long as you haven’t owned a primary residence in the past three years).
A Look at the Numbers
The tax credit is equal to 10% of the purchase price of the home, up to $8,000. The amount of the credit you can qualify for is related to how much money you earn. Here’s how the credit is scaled: Single home buyers earning 150K or less qualify and married couples and joint buyers whose incomes do not exceed 225K. This credit represents a significant amount of money. One of the biggest points of difference for the new credit from the one congress passed in July of 2008, is that the new credit does not have to be paid back.
In addition, it's refundable, which means that if you’ve paid all your taxes as you go with an automatic payroll deduction, you would receive an $8,000 check from the IRS.
If you're committed to buying a house in 2009 or 2010 and want to use the $8000 tax credit for a downpayment, consult with your certified public accountant.
In Summary
Qualifying home buyers will need to make their home purchase between January 1, 2009 and June 30, 2010. And the home has to remain their principal residence for the following three years.
The new tax credit coupled with historically low mortgage rates and rising affordability, offers buyers a great opportunity if they act fast.
If you’re interested in learning more about the new tax credit or about homes in your area, call Karyn Jentz at 210-454-4462 or email karyn@karynjentz.com.  |
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