Archive for Tax Credit
Why you Need to Act Now for the Tax Credit
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Time is running out on the Extended tax credit. A house must be under contact by April 30, 100 days from tomorrow, to qualify for the tax credit. The implementation of some of the new regulations is adding to time to get mortgage approval. As the clock clicks down you must ensure you are working with a competent mortgage professional.
Remember the Government is literally handing out money asking you to please take this money of up to $6,500 for a move-up buyer and up to $8,000 for first time homebuyers. Remember that this credit is on top of the credit you will realize from being a homeowner of interest and taxes paid. To top it all off present home values are still low, rates are at a historical low. Your ability to own a home and the affordability will likely never be better than it is right now.
Are you Ready?
- Creditworthiness (What credit is acceptable, what credit is needed to qualify for various loan programs)
- Qualifying Income
- Mortgage Loan Options
- Down Payment (With a USDA Loan it will be zero)
These are just some of the questions that are answered during an initial consultation with me.
Listen as an I.R.S. agent gives tips on the homebuyer tax credit.
I really appreciate you coming back to look around. If you know of anyone else you think might enjoy my blog, please don't keep me a secret.
5 Facts About Home Buyer Tax Credit
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We all know that the First Time Homebuyer Tax Credit got extended and now includes those who presently own a home, but here are 5 facts that you may not know.-
Income limits are based on the Adjusted Gross Income
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Income can exceed $125,000 (single) and $225,000 (married) by $20,000 and still receive a partial credit based on a “MAGI formula” created by the IRS.
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For New Construction the “date of purchase” is considered the date the Home Buyer occupies the property, not the closing date or the start of construction.
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When a Home Buyer buys a 2-4 Family residence and occupies one of the units as their personal residence they are only allowed to claim 10% (or max credit “$8,000 for First Time Home Buyer” “$6,500 for move up Home Buyer”) of the unit they occupy, not the entire sales price.
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Homes purchased on Land Contract can QUALIFY for the tax credit, but must meet the 7 part test.
The eligibility period for the extended tax credit is for homes purchased after November 06, 2009 and before May 01, 2010, with a closing occurring prior to July 01, 2010.
When you are ready to get pre-qualified start the process at Lakewood Lending Group.
