8 Facts About the $8,000 First-Time Home Buyer Tax Credit

-

  1. The American Recovery and Reinvestment act of 2009 authorized a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

  2. Any home that will be used as your principal residence qualifies for the tax credit.

  3. The law defines a "first-time home buyer" as a buyer who has not owned a principal residence during the three-yaer period prior to the purchase.

  4. First-time home buyers purchasing any type of home, new or resale, are eligible to receive the tax credit as long as the closing date and title transfer occurs before December 1, 2009.

  5. The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.

  6. The income limit for single taxpayers is $75,000 and $150,000 for a married taxpayers filling a joint return.

  7. The money comes in the form of a tax refund, meaning that you will not receive the money until after the house is bought and your 2009 tax return is filed.

  8. If you are seeking an FHA (Federal Housing Administration) loan, the federal $8,000 tax credit may be used toward your down payment or closing costs.

The $8,000 tax credit has been motivating first-time buyers to take advantage of current real estate market conditions. Buyers can look at this refund as a reduction in their home price, with a $100,000 purchase effectively becoming a $92,000 once the credit is awarded. The fact is that this credit has made the dream of home ownership a reality for many who may not have had the opportunity before.


We encourage you to consult with a qualified tax advisor or legal professional about your unique situation.


SI Real Estate, Tampa's premier real estate boutique, will be holding an information session for first-time home buyers on August 2 at the Courtney Palms clubhouse to help discuss what you need to know in order to be a prepared buyer in today's Tampa Bay real estate communities/ Please join us for this exciting event! Send RSVP to Info@SIRealEstateInvestments.com or call (813) 631-5144 to reserve your spot.

Comments

Post a Comment

Popular posts from this blog

Featured Community of the Week – Beso Del Sol in Dunedin, Florida

-
Image
Can you imagine waking up each morning to a majestic view of the sparkling Gulf of Mexico waters? This all-inclusive resort condo community in Dunedin, Florida provides a perfect waterfront retreat. Situated directly on the Gulf, panoramic waterfront views overlook the St. Josephs Sound and Honeymoon Island, creating a tranquil setting that is far from the ordinary. Condo and community features include: · Fully furnished, all-inclusive studio, one and two bedroom units · Flat panel TV’s, stainless steel appliances, and granite countertops · Two waterfront heated swimming pools and hot tub · Fully-equipped fitness center and bicycle rentals · Onsite property management and housekeeping · Boat slips · All utilities included in HOA fees · Castaway Tiki Bar onsite with weekly entertainment Beso Del Sol Resort offers three wonderful floor plans to choose from with prices starting in the mid $100,000’s. Whether you are looking for a real estate investment, weekend retreat, vacation property...
Read more

Real Life Real Estate...New Construction vs. Foreclosure

-
Image
A hot topic for potential homebuyers is, should I look Foreclosures, existing older homes, or New Construction? The hype lately seems to be on Short sales and Foreclosures. Bank owned properties are being snatched up by cash investors and we hear of bidding wars everyday in Tampa over bank owned properties. Investors have money to spend, and no desire to occupy the property personally, they can fix any issues that arise with no problems. It is very enticing for a buyer to see large discounts foreclosed and short sales but what else does a buyer need to consider when deciding on purchasing a home? SI Real Estate has helped three clients purchase a new Construction home in the last two weeks. What made these buyers decide purchasing a new home was better than foreclosure and existing home options? There is a great website being advertised by Lennar homes, “Buying a New Home vs. a Foreclosed Home” . This website highlights advantages of purchasing new construction. Buyers need to cons...
Read more

Tampa Real Estate Hot Topic: Mortgage Rate Predictions for 2013

-
Image
Last week we discussed the importance of understanding the effects that rising home prices have on mortgage rates and the buying power of consumers in the market to both buy and sell.   The recent mortgage rate activity has caught the attention of the nation, and of course our local Florida real estate market.     Since May 2013, the average rate on a 30-year mortgage rose from approximately 3.3% to 4.87% according to Freddie Mac.   Executive vice president of McCue Mortgage, Kim Neilson, states that the market hasn’t seen an increase of this magnitude in years.   Despite the recent jump, however, rates are expected to remain steady between 4-5% throughout the remainder of 2013.   There are two main reasons for this situation on the market. Firstly, the Federal Reserve chairman Fred Bernanke indicated in mid-June that he might slow down the purchase of mortgage-backed bonds. These were designed to strengthen the secondary market for lenders and ...
Read more