First time home buyer tax credit update

February 13th, 2009 Categories: Real Estate News

SAN DIEGO– While not official yet, it looks as though the first time buyer tax credit was trimmed from the proposed $15,000 to $8,000. This increase represents only a $500 increase from the existing $7,500 credit. However the significant change is the removal of the pay back requirement. Stay in the home for over three years and the money is free!!!

FIRST-TIME HOME BUYER CREDIT First-time home buyers are eligible for a refundable tax credit equal to 10 percent of the purchase price of their home, up to $8,000, if they made the purchase after Jan. 1, 2009, but before Dec. 1, 2009.

Unlike a similar credit that Congress provided last year, you don’t have to pay this one back over 15 years. The new credit, however, does phase out for individuals with incomes over $75,000 or married couples with incomes over $150,000 who file their taxes jointly. Also, you forfeit the credit if you sell the house within three years.-New York Times, 2/12/2009

2 Comments »

More good news for San Diego’s buyers and sellers said:

[...] DIEGO– Well first we had the announcement regarding the first time home buyer’s tax credit. Today, FHA announced conforming loan limits are being moved back up. For a single family home, the [...]

# 24 February 2009 at 4:32 pm

The fast and the furious: Bank owned homes said:

[...] the affordability rate so high for homes, interest rates remaining historically low and the tax credit given by the fed, this is a prime market for first time buyers. If we look at 3 bedroom single [...]

# 26 June 2009 at 10:32 pm