Emily The Friendly Realtor

$6500 for first time buyers AND current homeowners.

My office has been buzzing with first time home buyers taking advantage of the $8,000 Tax Credit. More recently, however, I am seeing a lot more reluctance and hesitation because some had wanted “in” on the tax credit but weren’t sure if they would miss the deadline.

Good News for Buyers: The Credit has been extended!

If you have been ready to buy a home, then there is no better time to take hold of that opportunity!!! (I don’t think it is wise to purchase a home JUST to get money back at tax time. Because the purchase, maintanance, and expense of investing in a home will far outweigh any amount of cash back tax credit) That tidbit aside, let’s go over the rules for the NEW TAX CREDIT!

• The Tax Credit has been reduced to $6500
• You must have a contract on a home by April 3oth 2010
• You must close on the home by June 30th, 2010
• You won’t get your tax credit until tax time in 2011. It seems obvious,  I know.
• Income Restrictions:  Single, $125,00. Married, $225,000
• If you make over the above restrictions, you do not qualify, even though you are the person funding this whole project
• Current Home Owners must have lived in current residence for 5 years to qualify
• Vacation homes or time shares are not eligible for use of the tax credit
• Homes over $800,000 do not qualify for the tax credit.

Some Lenders are allowing the credit to be used as the  down paymentat closing. For an FHA Loan, you must put %3.5 down. For a Conventional Loan, you must put 5% down. If you want the tax credit to completely cover your down payment, Then your purchase price should be no more than $130,000 for a home. You can use your own money and combine it with the tax credit as downpayment.

It is uncertain which lenders and what programs will authorize the “advance” of the tax credit as downpayment at this time. This informaton will be available at the effective date of the program, which is December 1st, 2009.

The home buyer tax credit is projected to cost tax payers 10 billion dollars. So send a thank you card to anyone who is a tax paying citizen! Haha!

Other extensions awaiting approval is an extension to pay unemployment for an additional 20 weeks than is currently allowed. Conservatives are trying to make an ammendment that requires immigration verification before paying unemployment. This approval is on hold until an agreement over whether or not is right of the U.S. Government  to request verification of legal citizenship or not before Uncle Sam pays out.

If you need a Realtor who is up on the  financial times, is experienced, and knows how to work with the tax credit regulations, accurate contract management, and lenders, then send me an email at emily@infinityrealtysells.com or call or text me at 816-726-6706!

Thanks for Reading!
-Emily Galbraith
(The FRIENDLY Realtor)