In an attempt to stimulate the real estate market, the Federal Government has offered a tax credit for first time home buyers. This tax credit is given in the amount of up to $7,500 when the first time home buyer files their taxes for the year the house was purchased in. This tax credit is not completely “Free Money” but it is basically like an interest free loan that is repaid over 15 years - $500 per year.
Looking for information about the 2009 first time home buyer tax credit?
Here are the quick rules for first-time home buyer tax credit:
- The maximum credit amount is $7,500.
- Available for purchases on or after April 9, 2008 and before July 1, 2009.
- Single taxpayers with incomes up to $75,000 and married couples with combined incomes up to $150,000 qualify for the full tax credit.
- The tax credit works like an interest-free loan and must be repaid over a 15-year period.
- The tax credit is available for first-time home buyers only.
What does that mean to you?
If you make less than $75,000 (or $150,000 combined if you’re married) and you have not owned a home in the last 3 years – you qualify for the $7,500 tax credit. All you need to do is buy a home before July 1, 2009. When you file your taxes for 2009, you will receive a check from the federal government for $7,500 +/- your normal tax refund.
The market is down – is now the time to buy a house?
Of course! We can’t guarantee anything, but we can tell you that home prices are predicted to be at or near the lowest price in years making it a buyer’s market. In addition, interest rates are at the lowest we have ever seen. These factors alone are a great opportunity to acquire a higher valued home at a lower buy-in cost. Providing you hold your house for at least 2-4 years allowing time for the market to steadily pick up, this could be great potential for appreciation on your home purchase.
There is one catch – Austin’s real estate market is one of the most stable markets in the country so don’t expect 40% off original prices like those seen in Florida or California. But as a first time home buyer you have a great opportunity to get a very nice home for a fair price now and finance it with a low interest rate!
FHA loans only require 3.5% down and rates are currently right under 5% (depending on credit score and other qualifying factors). So think about it, put 3.5% down and get $7,500 back from the IRS when you file your taxes for 2009 – it’s basically like putting close to 0% down.
Contact us for a FREE Tax Credit Brochure
For more information about the first time home buyer tax credit click here.
[...] are still eligible for the original $7500 tax credit (that must be repaid) but you do not qualify for the new $8000 tax stimulus.