First time home buyers can now receive at tax break of $7,500 if they purchased a home on or after April 9, 2008 and before July 1, 2009.
With the recent decision by the U.S. Department of Housing and Urban Development, better known as HUD, to take away Down Payment Assistance Programs that were helping first time home buyers buy a home by gifting them a down payment, this new tax credit should be extremely encouraging to those who were relying on these programs to get into a new home.
What is this new program and how does it work?
The Federal Housing Tax Credit is a way to help out first time home buyers qualify to purchase a new home.
The credit is worth up to 10% of the purchase price of a home up to a maximum amount of $7,500.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for this credit.
The tax credit works as an interest free loan from the government that is repaid over a period of 15 years.
If you decide to sell your home before the tax credit is payed back, you will owe 10% of the amount you gain from the sale of your house, up to $7,500. If you loose money from the sell of your house, you will owe nothing, the government will write the loss off.
If you are interested in learning more about this tax credit, please feel free to contact me. As real estate professional, I will be able to assist you with finding out how and if you are qualified for this exciting new program.
Authored by Terrie Leighton: August 2008. Terrie Leighton is a Real Estate Agent in Northern Nevada.
Disclaimer: The information in this blog are believed to be true, but are not guaranteed.