To learn more about current buyers incentives go to http://www.mibor.com/members/buyer_incentives.asp
up to $8,000 cash to you!!!
Who is eligible? Tax credit is available to first time home buyers for 10% of purchase price or up to $8,000. The law defines a first time home buyer as a buyer who has not owned a home during the past three years. All U.S. citizens who file taxes are eligible to participate in this program.
** CURRENT HOME OWNERS QUALIFY AS OF NOVEMBER 2010 - CHECK WITH ME FOR MORE DETAILS **
Do any income limits exist? Yes. Home buyers who file as single head-of-household taxpayers can claim the full tax credit if their modified adjusted gross income (AGI) is less than $75,000.00. For married couples filing a joint return, the income limit doubles to $150,000.00. Single or head-of-household taxpayers who earn over $75,000.00 may be eligible to receive a partial first-time home buyer tax credit. Married couple who earn over $150,000.00 may be eligible to receive a partial first-time home buyer tax credit.
** INCOME LIMITS NOW INCREASED - CHECK WITH ME FOR MORE DETAILS AND SEE IF YOU QUALIFY **
Are there payback provisions? No. Unlike the Tax Credit enacted in 2008, the new credit does not have to be repaid. Homeowners must use the home as a principle residence for at least three years or face recapture of the tax credit amount. Certain exemptions apply.
What are the effective dates for the tax credit? First-time home buyers would receive the tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, the home buyer must actually close on the sale of the home during this period.
** NEW - EXTENDED THROUGH APRIL 2010 (closing by JUNE 2010)
What types of homes qualify for the tax credit? All home types qualify, provided that the home will be used as a principal residence, and the buyer has not owned a home in the past three years. This includes newly-constructed homes.
Refundable tax credit:
What does this mean? A refundable credit means that if you pay less than the tax credit's value in federal income taxes, then the government will write you a check for the difference. If you are due to receive a tax refund from the government, your refund will increase by the amount of the tax credit. Buyers can take advantage of the tax credit on their 2008 or 2009 tax returns on home purchased after January 1, 2009.
Can the tax credit be claimed in conjunctions with a mortgage revenue bond? Yes, the tax credit can be combined with the MRB home buyer program.
Does a person who finance a first home in 2008 qualify for this credit? No, but if the home was purchased between April 9, 2008 and January 1, 2009 they may qualify for the $7,500.00 federal tax credit of 2008.
Qualify for an FHA mortgage? Buy a HUD home and pay only $100 down! Additional frequently asked questions answered here:
Q: I owned a home for 20 years, but due to divorce became a renter in 2008, would I qualify for the $6,500 credit for current home owners?
A: Yes, so long as all of the other qualifications are met. The new credit requires buyers claiming this credit to have owned a home they maintained as their primary residence for 5 consecutive years out of the last 8. Q: Our income level exceeds the limit in the previous credit, but we would qualify under the new limits. Should we wait until after November 30 to close or do we qualify now?
A: No need to wait. The new income limit ($125,000 for individuals and $225,000 for married couples) are effective after November 7, 2009. The new credit makes the date November 30, 2009 completely irrelevant. Q: If my income exceeds the income limits, is it possible for me to still be eligible for a smaller credit?
A: It’s possible. Like in the previous credit, a $20,000 phase out is provided with the new limits. For example an individual making $140,000 exceeds the new income limit by $15,000. Because $15,000 uses up ¾ (0.75) of that $20,000 phase out, that buyer could qualify for the other 25% of the credit, or $2,000 for a first time buyer or $1,625 for a current home owner. The phase out is $20,000 for both individuals and married couples. Q: Are the income limits different for the first-time home buyer credit versus the current home buyer credit?
A: No, the limits are the same. Q: I have a closing scheduled for November 30, 2009 to meet the deadline of the original tax credit. Do I need to move the closing to December 1, 2009?
A: No. That Nov. 30 date became meaningless when the President signed the bill becoming effective on Nov. 7, 2009. Besides the new deadline of April 30, 2010 (and closing by June 30), the only date you should worry about is Nov. 7, 2009. That is the date the modifications to the first-time home buyer credit and the new current homeowner credit became effective. Sales prior to that date are subject to the rules of the previous credits, sales on and after Nov. 7, 2009 are subject to the new rules. Q: I heard there was something included in the new credit to crack down on fraudulent claims, how will that affect me?
A: It requires you to submit a HUD-1 settlement form (closing statement) with your taxes when you claim the credit. Q: Is there any sort of phase out for the limit on home purchase price in the new credit?
A: No. The phase out is only for income limits. The $800,000 cap on purchase price is firm. Any purchase with a price of more than $800,000 is ineligible. |