Remember if you are a first-time buyer, there is up to $8,000 Federal Tax Credit available, but home must close by November 30, 2009 to be eligible.
Some basic qualifications for the tax credit are:
- To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
- The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit. Some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
- The credit is for 10% of the purchase price, up to $8,000 (also depending of the income limits noted above)
- The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
Click here to out more information about the $8,000 Federal Tax Credit.