First time Home Buyer Tax Credit up to $7,500
The Housing and Economic Recovery Act of 2008 HR 3221 passed by Congress and signed by the President includes a provision for a tax credit for first time buyers of up to $7,500.
Who is eligible?
First time buyers who are buying a primary residence and have not owned principal residence in 3 years prior to purchase. The property must be a single family residence, including condominiums and co-ops.How is the credit calculated?
It is based on 10% of the cost of the home, up to a maximum of $7,500.
Are there income limits?
Yes. To be eligible for the full credit, an individual can have an adjusted gross income of up to $75,000. A couple filing a joint return can have an adjusted gross income of $150,000.
Does it have to be repaid?
Yes. The tax credit must be repaid at 6.67% of the credit over the course of 15 years. If the house is sold before 15 years, then the remaining tax credit must be repaid on sale. This means that if an individual received a tax credit of $7,500, he/she must repay approximately $502.50 per year for the next 15 years.
When does it take effect?
The effective date is retroactive back to April 9, 2008. The termination date is July 1, 2009.
Please call Liz Moeller at 800-972-7759 for mortgage information or to pre-qualify for a loan. Please ask about our $500 first time buyer credit at closing!