Dallas Home Buyers Tips for 2009
What you should know about the $8,000 Tax Credit for this year’s first-time homebuyers -- Part of the new $787 Billion Stimulus Plan. We will shed some light on the bill that has house hunters buzzing.
Last year's tax credit for first-time home buyers was for $7,500, so this year's $8,000 credit will give you an additional $500 or up to 10% of the purchase price of your home (whichever is less). But the biggest difference between the two in the eyes of a home buyer is probably this: Last year's tax credit had to be paid back over the following 15 years. In effect, it was an interest-free loan. But this year's tax credit is exactly that, a credit. The $8,000 does not have to be paid back at any time.
At this point in time, those who purchased their first home in 2008 under the provisions of the former $7,500 credit won't qualify for the upgraded plan. House hunters who buy their homes between Jan. 1 and Dec. 1 of 2009 could qualify for the $8,000 (true) credit. There are some particular criteria for qualifying:
- To qualify as a "first-time home buyer" you must have not owned or co-owned a home within the three years prior to this year's closing date.
- Household income is a factor as well. To be eligible, adjusted gross income for single taxpayers can be up to $75,000, and $150,000 for dual-income families filing jointly.
- The new $8,000 tax program also allows purchases financed with state and local tax-exempt mortgage-revenue-bond programs -- different from last year's tax incentive.
- As a first-time home buyer, you should know that your new home must be used as your principal residence (not a second home or investment property).
There's no telling for sure how well the first-time home buyer credit will work, but the National Association of Realtors projects that 300,000 more houses will sell during 2009 as a direct result of the new $8,000 credit. If you're considering buying a home, there's no better time to get with your agent from Blueprint Realty along with your pre-approval and hop to home shopping as quickly as possible.
If you have owned a home previously, you will only get the tax credit if your last home purchase was 3 or more years ago. Also, keep in mind this tax credit is only good through the end of 2009. Happy house hunting and call us as soon as possible to purchase your new home.
