Following are key points that prospective home buyers should be aware of when considering a home purchase under the tax credit program.
A tax credit of up to $8,000 is available for first-time home buyers purchasing on or after January 1, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
A tax credit of up to $6,500 is available for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The repeat home buyer tax credit applies to houses sold after November 6, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
Income limits of $125,000 for individuals and $225,000 for married couples filing jointly apply to all sales occurring after Nov. 6, 2009.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009 are $75,000 for individual taxpayers and $150,000 for married couples filing jointly.
Homes priced above $800,000 are not eligible for either the first-time home buyer tax credit or the repeat home buyer tax credit.
Expanded tax credit benefits apply to members of the military, the foreign service and the intelligence community.
Home purchases in 2010 may be claimed on an amended 2009 income tax return.
Persons who are claimed as dependents by a taxpayer or who are under age 18 do not qualify for a tax credit.
Home purchases from relatives of the taxpayer or the taxpayer’s spouse do not qualify for the tax credit. The IRS defines relatives as ancestors (parent, grandparent, etc.), lineal descendants (child, grandchildren, etc.) and spouses.
Married couples are not eligible to claim the first-time home buyer tax credit if either spouse has previously owned a home. They may, however, qualify for the repeat home buyer tax credit.
Neither the first-time home buyer tax credit nor the repeat home buyer tax credit, have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
Taxpayers must submit a copy of the HUD-1 settlement statement and IRS Form 5405 to claim either the first-time home buyer tax credit or the repeat home buyer tax credit.
Many properties priced UNDER 150,000 will sell within the first week, some the same day! It is imperative if you want to be competitive on these properties you get pre-approved BEFORE you start looking and provide your Realtor with a copy of the pre-approval letter so they know what type of property to help you find. For example, if you are FHA approved, you should NOT be looking at properties that are indicated as CASH (as they may have structrual damage and will NOT pass the FHA lender guidelines) or the seller may NOT want to help pay closing costs. It is in your best interest to find a Realtor you can trust to help you navitate quickly through the system to find you the best house possible, before someone else gets it!
Short Sale: Have questions regarding a short sale? Call me for a confidential consultation, we HELP sellers navigate through the paperwork, work directly with the bank and keep track of the timelines for you. Remember, the call is confidentential. NOTE: If you are searching through short sales and want the tax credit, you are wasting time; most short sales will not close in the time needed to be eligible for the tax credit.
Pre-approved?: If you are not already pre-approved, do so NOW, before interest rates go up! If your pre-approval letter is more than 30 days old, contact your lender for a NEW updated one. Many loan programs have changed and some are now extinct: stated income and most 100% loans are just a few that are now history; VA & FHA are now some of the hottest loan program (VA IS still 100% if you are eligible and FHA 96.5%) and for those who want to buy a fixer, ask about the FHA Streamline loan 203(k). Don't have a lender? Check out the links below for our preferred lenders; lender that our clients have been helped by and approve of!
Helpful Links
Not only do we have local information on our site, but we have also put together the following links that you may find useful. Please note that all links will open in a new window.
Property Search This advanced web site lets you search thousands of local listings along with another 120,000 national listings. Once you find your dream home just click on "Contact Us" and we'll be more than happy to show you your next home!
Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 02/09/2010. The listing information on this page last changed on 02/09/2010. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of RMLS (last updated Tue 02/09/2010 8:25:43 AM EST) or Willamette Valley MLS (last updated Tue 02/09/2010 8:51:45 AM EST) or MLSCO (last updated Mon 02/08/2010 12:31:51 PM EST) or Southern Oregon (last updated Tue 02/09/2010 10:00:01 AM EST). Real estate listings held by brokerage firms other than RE/MAX equity group, inc. may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved. --
