Real Estate Information Archive

Don’t Wait! This critical time frame could save you thousand$

Thinking of buying or selling? 

Repeat Buyer $6,500 Tax Credit Expires April 30th!

If you have been hearing about the first time homebuyer tax credit for the past year but thought it wouldn’t apply to you since you are not a first time homebuyer, but rather a current homeowner who is considering moving up or possibly downsizing?  Think again! 

In November of 2009 the government launched a new program offering a tax credit of  $6,500 for qualified REPEAT homebuyers who sign a binding purchase contract by April 30th, 2010.  A qualified REPEAT homebuyer is one who has owned and occupied the same home for at least five consecutive years of the eight years prior to the new purchase date.  

Even better, this is a tax credit and not a tax deduction!  This means, the $6,500 is a dollar for dollar reduction in what the taxpayer owes.  For example, if you owed $6,500 in income taxes but are eligible to receive the $6,500 tax credit, you would owe nothing to the IRS.

It’s a double-whammy! The $8,000 1st Time Homebuyer Tax Credit Benefits both Buyers AND Sellers!

Click Here for the Homebuyer Tax Credit quick reference guide

Visit www.federalhousingtaxcredit.com for further information.

***Attention First-Time Homebuyers***ACT NOW - ONLY 6 MONTHS REMAIN!!! Use your 1st-time homebuyer tax credit of $8,000 towards closing costs or down payment!

The US HUD Secretary, Shaun Donovan, announced that the Federal Housing Commission (FHA) will allow homebuyers to apply the $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home.

Currently, this tax credit can only be accessed after filing their tax returns with the IRS. Today's announcement allows Home buyers using FHA-approved lenders to apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.

You can review the full announcement on the Housing and Urban Development (HUD) website by clicking here.

The following video released by the National Association of Home Builders discusses use of the First Time Homebuyer Tax Credit towards downpayments.

Questions about how the $8,000 Federal Housing Tax Credit works?  Watch the video prepared by the National Association of Home Builders below:

**NOTE-  This video does not yet reflect today's announcement above!**