Thousands of dollars in tax credits are waiting for 1st time homebuyers. It’s like getting the house of your dreams at a big discount!
First-time homebuyers may be eligible for a large federal tax credit on homes bought in 2009 or early 2010. If you haven’t owned a home in 3 years, you are considered a 1st-time buyer. Sign a binding contract by April 30, 2010, and you are eligible for a tax credit worth either $8,000 or 10% of the value of the house, whichever is less.
The closing for 1st-time buyers can take place as late as June 30, 2010. The 1st-time homebuyer credit is refundable, so you can get it even if you owe no federal tax. However, there is an income-based phase-out beginning with joint filers with an income of $150,000 and $75,000 for single filers. The 2008 tax credit was really an interest-free loan that had to be paid back over 15 years, unlike the current credit. This is a better deal. Your REALTOR can help you figure out if you might be eligible for the new tax credit, but you need to hurry to find the perfect home by April 30. Learn more about the Federal Tax Credit.