NEW HOMEBUYER TAX CREDIT FAQ'S

FAQs: First Time Home Buyer's Tax Credit

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Now is the perfect time to buy a new home. If you are a first time home buyer, WAIT no longer. This may very well be the best time in history to take the plunge.

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Whats on your side Now...

*Affordability is better than ever*Plenty of Homes to chose*Sellers are more willing to bargin*Historically low interest rates*$8,000 first time homebuyers tax credit*


What is the Tax Credit?

It is a credit for up to 10% of the cost your new home or a maximum of $8,000. Any home purchasesd for $80,000 or more qualifies for the credit.


Who qualifies for the credit?

Only first time homebuyers. You're considered a first time homebuyer if you have not owned a home for 3 of the last five years.


Are there income restrictions?

Yes, individuals are eligible for the credit if their income is no more than $75,000. For married couples the limit is $150,000.


What if I make more?

You could still get a portion. Individuals who earn up to $95,000 and couple that earn up to $170,000 can still get a tax credit, based on a sliding scale.


Are there financing restrictions?

Most financing arrangements are acceptable.


Do I have to repay the credit?

No, unlike the 2008 credit, there is no repayment requirements.


How do I apply?

There is no pre-purchase authorization. You simply claim the credit on your 08 or 09 tax return, on the IRS form 5405. If you buy a home before April 15,2009, you claim the credit on your 2008 taxes. If you purchase after that, claim it on your 2009 return.


What is the deadline?

You must buy and close on your home before December 1, 2009 to be eligible.
Feel free to contact me for more details and explainations on how you should start your search for you new home today!