The First Time Homebuyer Tax Credit Expires November 30, 2009 That means you have limited time to find a home before it’s too late. It is recommended that you enter into contract prior to October 15 if you wish to close before the tax credit expires. With closing timelines stretching anywhere from 30-50 days, if you want to take advantage of the $8,000 tax credit and low interest rate environment, you should take action soon!.
What is the Definition of a First Time Homebuyer?
The law defines “first time homebuyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homebuyership history of both the home buyer and his/her spouse.
Who is Eligible?
First time homebuyers purchasing any kind of home–new or resale–are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
Income limitations of $75,000 for single taxpayers and $150,000 for married taxpayers who file a joint tax return apply to this tax credit. However, taxpayers who earn slightly more than the limits can apply for a reduced tax credit.
What Type of Home Qualifies?
Any home purchase qualifies, including single-family homes, townhouses, condominiums, manufactured homes and houseboats. Qualifying homes may be an existing home, new home or a home the owner contracted to build. Those who own a vacation home or rental homes that are not their principal residence are also eligible for the tax credit if they buy a principal residence.
Buy Now and Take Advantage of This Tax Credit
Now is the time to buy a home you might otherwise have not been able to purchase. Contact Cody Touchette at Mortgage Advisory Group today for free professional advice on this program and for fast, easy loan qualification. Need a referral to a great Mortgage Advisor? Call 425-317-8000 and we will ensure you get the help you need. Your Future is Our Focus.