Tax Credit for First-Time Home Buyers
May 9, 2009
One of the perks in the recent Federal Government “stimulus bill” is the $8000 tax credit for first-time homebuyers.
To qualify for this credit, the purchase must be made before November 30, 2009. As the credit is intended for first time homebuyers, those applying for the credit may not have purchased a home in the past three years.
Buyers who accept the credit must also live in the house they purchase for at least three years, or Uncle Sam will require the owner to return the credit.
Qualifications are otherwise simple: single buyers must earn $75,000 or less to qualify; couples may earn up to $150,000. Those fortunate enough to have incomes exceeding thes limits may still be eligible for a partial credit.
Is $8000 a lot of money towards a home? Yes, and no, given the high price of housing in areas like Orange County. But note, that this credit may be enough to cover many buyer’s closing costs.
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