Now Is The Time To Buy!

Now IS the time to buy - especially if you are a first time buyer! A first time home buyer is defined as " a buyer who has not owned a principal residence during the three-year period prior to the purchase".


The Housing and Economic Recovery Act of 2008, offers up to a $7500 tax credit to first time home buyers. This applies to single family homes, townhouses, condominiums, manufactured homes and houseboats that close between April 9, 2008 and July 1, 2009. You must meet income requirements as well. Please see my last post for additional information.


The tax program is simple. Qualifed individuals claim the tax credit on their federal income tax return. It doesn't require any additional paperwork. If you are certain, absolutely certain that you are making a purchase, you are permitted to reduce your income tax withholding. By reducing your tax witholding (via your W-4 through the employer) the buyer is able to start accumulating cash by increasing the take home pay, and then applying the money towards downpayment and closing costs.


What is important to know about this Act - this is a tax credit - a non interest loan - meaning you must repay the government either over the next 15 years or when you sell the home, if there were sufficient capital gains from the sale.


Please call us with your questions! Let us help you get in to your first home - but hurry, this tax credit is only unavailable until July , 2009!