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Here are six things you need to know about the $8,000 first-time home buyer tax credit. 

1.  $8,000 for new buyers: This credit is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000 and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, This one does not have to be repaid.

2.  First time buyers defined: For the purpose of this legislation, a “first-time home buyer” is someone who hasn’t owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you’ve owned a vacation home–but not a principal residence–within the past three years, you would still qualify for the credit.

3.  2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won’t be able to take advantage of it.

4.  Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5.  Refundable: Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability. This tax credit will be refunded to a buyer, if his year end tax liability is less than the credit.

6.  Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

Click Here to Watch an Informational Video

If you have more questions, please contact us via email or 219-661-1256. 

Cold Feet Leads to Regrets

by The Jana Caudill Team

In life it is better to say, "I'm glad I did" rather than "I wish I had."

 

Make your list of your wants and needs for your dream home in Northwest Indiana. We can go over them together.

 

 

There are many new tools for first time homebuyers to help with financing, etc. There is still time to take advantage of the $8,000 tax credit available to you. Download this free e-book for more information. It costs you nothing to discover your options.

 

 

Call The Jana Caudill Team today before someone else is living in your dream home.

 

 

 

Time is Running Out!

by The Jana Caudill Team

Time is running out! Only 110 days left to take advantage of the $8,000 tax credit for first time home buyers. Purchases must be made before December 1st of 2009 in order to qualify.

First time home buyers are considered those who have not owned a home for three years. This tax credit is equivalent to 10% of the purchase price of the home, capping at $8,000 and is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit. Married couples need a gross income of $150,000. Those earning more may be eligible for reduced credits. The new home has to be their principal residence for three years.

This is just another great reason to now buy a home. To see a video explaining the tax credit, please click here. The Jana Caudill Team would love to help you find the home of your dreams. Please contact us for any assistance you might need.

Explanation of Using Tax Credit For a Down Payment

by The Jana Caudill Team

More Great News for First Time Home Buyers!

by The Jana Caudill Team

More great news for first time home buyers!

 

According to the National Association of Realtors, the US Department of Housing and Urban Development will soon be permitting FHA approved lenders to use the $8,000 tax credit as down payment. Home buyers will be allowed to “monetize” the tax credit through short term bridge loans and can access the funds immediately at the closing table. Official details on the HUD’s initiative are scheduled to be released next week.

The Jana Caudill Team will keep you informed of any new developments in the real estate market.

New stimulus package proposes tax credit for home buyers

by The Jana Caudill Team

Last week, the Senate verbally approved the Fix Housing First Act, an important amendment to their version of the Economic Stimulus Bill. The piece of legislation and the Stimulus Bill are still awaiting Senate and House negotiations, but could provide all home buyers of primary residences over the next year with a tax credit of $15,000 or 10 percent of the cost of the home, whichever is less. The credit will not need to be repaid unless the home is sold within two years of purchase. This Senate's version of the tax credit, if implemented, will replace, or “sunset” the current $7,500 credit. If you are not familiar with this Act, please click here for more information.

The Jana Caudill Team will send out the latest information as soon as it becomes available.

If you are interested in buying or selling a home, let the number one real estate agent in Northwest Indiana work for you! We can be reached at (219) 661-1256 or via email at jana@thejanacaudillteam.com.

Source: Keller Williams Realty: This Week @ KW-February 9-13, 2009

The Housing and Economic Recovery Act of 2008, the most sweeping housing legislation since the Depression era, was passed by the U.S. Senate and House of Representatives at the end of last month and was signed into law by President Bush. The new law addresses various aspects of the housing downturn, including assistance for homeowners who are behind on their mortgages, federal oversight of Fannie Mae and Freddie Mac, and funding for cities to buy and fix up foreclosed properties. Many of the provisions of the new law go into effect October 1, 2008 but for first-time home buyers who bought, or will buy, their home between April 9th of this year and July 1, 2009, there's an immediate bonus a tax credit of up to 10 percent of the sales price, up to $7,500. Note that this is a tax credit, not a tax deduction. A deduction is an item that is subtracted from your annual income before income taxes are calculated. A tax credit is subtracted from the amount of taxes you owe.

First-time home buyer is specifically defined in the new law, and includes those who may have owned a home in the past, but not within the last three years. To qualify, be prepared to show your last three years? worth of income tax returns to prove that you did not pay mortgage interest during that period. There are also income limitations on the tax credit - $75,000 per year if you're single and $150,000 if filing a joint return to qualify for the full credit, but the credit does phase out beyond those amounts up to $95,000 for singles and $170,000 for joint filers.

By the way, the tax credit isn't a gift - you have to pay it back. Nevertheless, it provides an initial reprieve, as repayment doesn't begin until two years after purchase, and is payable over a 15 year period. If you sell the property before the tax credit has been fully repaid, any remaining amounts owed are due to the IRS upon closing.

Applying for the tax credit isn't mandatory, but for many, it will make home ownership feasible in the coming year and that's exactly what the tax credit is intended to accomplish.

Displaying blog entries 1-7 of 7