First-Time Home Buyer Tax Credit

This is the brand new tax credit that passed this week, I’m just learning the details and will update as news comes in, so stay posted. I am very excited about this credit because it will benefit so many people here in our smaller market.

1. Up to Eight Thousand Dollars For New Buyers: This credit is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000–and applies only to first-time home buyers and principal residences. And another piece of good news, this one does not have to be repaid.

2. What is a “first time home buyer” really?: For the purpose of this legislation, a “first-time home buyer” is someone who hasn’t owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you’ve owned a vacation home–but not a principal residence–within the past three years, you would still qualify for the credit.

3. How long will it last?: This is for the 2009 calendar year. Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. So, now is a great time to buy a home and with the low interest rates it’s a great investment.

4. What are the income limits?: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, $150,000 for married couples. Those earning more than these limits may be eligible for reduced credits.

5. What else?: Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability.

6. Do I have to pay it back?: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

About Lisa Marchant

I enjoy assisting people in finding their new home or investment property. I want to be their trusted advisor when it comes to learning more about the process of buying, selling and relocating to our area. It is my number one goal to provide exceptional service to everyone I work with. Having lived in Deaver and Cowley Wyoming since childhood I am very knowledgeable about the area and enjoy sharing that knowledge with those making Wyoming their new home. I am a full time real estate agent working for Johnson Home and Land. I joined the staff at Johnson Home and Land in March of 2003, beginning as the office secretary and personal assistant. I got my real estate license in February of 2005. I am a member of the Northwest Wyoming Board of REALTORS, Wyoming Association of REALTORS, the National Association of REALTORS, and locally a board member of the Lovell Chamber of Commerce.
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2 Responses to First-Time Home Buyer Tax Credit

  1. Josh says:

    just was wondering if i was to purchase land and build a house, would the tax credit apply to that or no. i am going to be a first time home buyer this year hopefully. thanks

    Like

  2. Sarah Johnson says:

    Hi Josh,
    What a great question. My understanding is that tax credit is only for those purchasing their first existing home. The WCDA “Home Run” programs are great for new construction. They have exceptionally low initial interest rates. Thanks for commenting and let us know how we can help.

    Like

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