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A TRUE TAX CREDIT
First-Time Homebuyers,
The Time is Now!
Find out how you can get an $8,000 Tax Credit.
If you are a first-time homebuyer or know someone who is, learn how you can get an $8,000
Federal tax credit when you close on the purchase of any single-family home between January 1, 2009 and November 30, 2009. The outstanding selection of available homes and attractive interest rates make this a great time to buy your first home.
Highlights of the First-Time Homebuyer Tax Credit:
Buyers would receive a refundable tax credit of up to $8,000 on their income tax return in the year following the closing*.
· First-time homebuyers and those who have not owned a primary home in the last three years are eligible.
· The credit is retroactive and can be claimed on an individual or joint tax return for the purchase
of any single-family home that closes between January 1, 2009 and November 30, 2009.
· The credit is claimed on a tax return to reduce the purchaser’s tax liability. Any credit amount unused will be refunded to the purchaser.
This is a wonderful opportunity for anyone who is thinking of buying their first home.
As Modified in the American Recovery and Reinvestment Act
Major Modifications Italicized
February 2009
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FEATURE |
CREDIT AS CREATED JULY 2008
APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER
APRIL 9, 2008 |
REVISED CREDIT -
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1,- 2009-AND BEFORE
DECEMBER 1, 2009 |
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Amount of Credit |
Lesser of 10 percent of cost of home or $7500 |
Maximum credit amount increased to $8000 |
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Eligible Property |
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. |
No change All principal residences in Georgia are eligible. |
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Refundable |
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. |
No change Purchasers will continue to receive refund for unused amount when tax return is filed. |
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Income Limit |
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). |
No change
Same income limits continue to apply. |
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First-time Homebuyer Only |
Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase. |
No change Still available for first-time purchasers only. Three-year rule continues to apply for Home Purchases. |
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Revenue Bond Financing |
No credit allowed if home financed with state/local bond funding. |
Purchasers who utilize revenue bond financing can use credit. |
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Repayment |
Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. |
No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
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Recapture |
if home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. |
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
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Termination |
July 1, 2009 (But note program changes for 2009) |
December 1, 2009 |
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Effective Date |
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. |
All revisions are effective as of January 1, 2009 |
Contact me today for the full service assistance you need to make
your homeownership dreams a reality or start the Pre-Approval process now!
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The “Do and Don’t List” for First-Time Homebuyers
When it comes to making the biggest investment in your life,
follow this list of tips to ensure the process is easy and stress-free.
DO use the free online tools to learn as much as you can – visit buyers section for more details.
DO take time to access, review and analyze your credit score – A strong credit score and record of financial responsibility results in the best mortgage interest rates. Check your credit record and correct anything you can in advance. Get pre-approved for a mortgage to find out your maximum buying potential.
DO organize your all-star team of real estate professionals – contact me and start working with a Realtor® to make your home buying experience a rewarding success. I can also assist you with the team of full service professionals you will need, including mortgage lender, title agency and closing specialist.
DO anticipate your future needs and buy for your lifestyle – determine how long you expect to live in your next home and try to anticipate your family’s major lifestyle changes in advance.
DO prioritize your housing requirements – before you start looking at homes, decide which features are “must-haves” and which are “nice-to-haves” so you’ll know where you can compromise to meet your budget.
DON’T fall in love with the first house or neighborhood you see – keep an open mind and
consider all possibilities to be sure you find the home that best suits your needs and budget.
DON’T buy beyond what you can afford – you may “want it all” but be sure the down payment, closing costs, monthly expenses and taxes are truly within your income and savings range before you sign on the dotted line.
DON’T treat your home like a stock portfolio – it’s unrealistic to expect your housing investment
to appreciate as quickly as your high-risk bonds.
Buying to suit your lifestyle, rather than hoping for a quick profit, will ensure you are viewing
homeownership in the right context.
DON’T try to time the market – by the time most consumers sense a major market shift, the tables have already turned. Focus on your own lifestyle and buy a home when the time is right for you, rather than hoping to spot an illusive window of opportunity.
DON’T jump into an exotic or confusing mortgage – if it sounds too good to be true, it probably is.
Read every aspect of the proposed agreement to be sure you understand it. Arm yourself with
information and don’t be afraid to ask questions.
DON’T underestimate the value of a trustworthy real estate agent’s expertise – do your own research and work with me, your local expert who has years of experience in finding the perfect home, negotiating and closing the deal.
*You’re considered a qualified first-time homebuyer if you haven’t owned a home within the past three years. Certain restrictions apply and income limits may affect eligibility.
Tax credit subject to repayment if property is resold within three years. Consult with a tax professional for tax-related information.
The advertisers and publishers are not responsible or liable for misinformation, misprints, or other errors. All information provided is deemed reliable but is not guaranteed and should be independently verified. Information subject to changes and withdrawals without notice.
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