I was just doing a little research about the Housing and Economic Recovery Act of 2008, and I was thinking that this is a great time for first-time homebuyers to finally buy that home they have been waiting for. With the $8,000 tax credit made possible by the Housing and Economic Recovery Act of 2008 and home prices at their lowest point in years, this could be an ideal time for first-time homebuyers.
The Housing and Economic Recovery Act of 2008 applies to first-time home buyers who purchased a home after April 8, 2008 and before December 1, 2009. This credit applies to either 10 percent of the purchase price for a home or up to $8,000. In order to qualify for “first-time” homebuyer status, the homebuyer must not have owned a principal residence in the last three years since the date of the title transfer of the previous principal residence they owned. Vacation homes are not considered principal residences, so if a person interested in receiving this tax credit owns a vacation property but has not owned a principal residence within the last three years, he or she can still be eligible for this tax credit. To qualify for this credit, homebuyers will have to own their home for at least three years. In the event that they sell their homes before this three year deadline, they will have to return the credit they received. The government will make exceptions in the event of death or divorce.
In order to be eligible for this tax credit unmarried buyers cannot earn more than $75,000 a year, and married couples cannot earn more than $150,000 in combined income. However, those who earn more than these amounts may still be eligible for reduced credit.
Whether this tax credit can help you to buy your first home depends on several personal factors including your annual salary. If you would like to find out more about this new tax credit for first-time homebuyers, I would recommend contacting a knowledgeable, real estate professional in your area. Consulting with someone who understands this new tax credit as well as your local-area real estate market conditions can help you to decide whether this tax credit is the right choice for you.
