First Time Home Buyers!

Take Advantage Of A New $8,000 Tax Credit!*
A First Time Buyer credit could reduce his or her taxes by as much as $8,000. But it's only offered for a limited time. If you haven't owned a home in 3 years take advantage now.

Rates Are Still Historically Low, But Rising!
And the favorable housing market may never be better than it is today. If things change, it could be an opportunity missed for you.

Sellers are Offering Some Of The Lowest Prices In Years!
It all adds up to one historic opportunity you may never see again. Start now so you will not miss out.

Attached is a simplified chart showing the changes in the new American Recovery & Reinvestment Act - First Time Homebuyer Tax Credit.

First Time Home Buyer Tax Credit – Frequently Asked Questions

FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act
February 2009 - Major Modifications Shaded in Blue
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
Amount of
Credit
Lesser of 10 percent of cost of home or $7500
Maximum credit amount
increased to $8000
Eligible
Property
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
No change.
All principal residences eligible.
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.
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.
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.
Revenue Bond
Financing
No credit allowed if home financed
with state/local bond funding.
Purchasers who utilize revenue
bond financing can use credit.
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
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.
Termination
July 1, 2009
(But note program changes for 2009)
December 1, 2009
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