First-Time Homebuyer Tax Credit

Included in the new stimulus package that President Obama signed on Tuesday, was a revision and continuation of the First-Time Homebuyer Tax Credit. The revised law is in effective for purchases made on or after January 1, 2009 and before December 1, 2009.

If you purchased on or before April 9, 2008 and December 31st, 2009 - please contact us or your Lender for the features of the law that were in effect at that time.

Effective from January 1, 2009 -December 1, 2009, here are the current rules:

• The tax credit is for 10% of the purchase price up to $8,000, instead of the original $7,500.


• The effective date has been extended to December 1, 2009, from July 1, 2009.


• The new tax credit does not have to be repaid if you keep the house for 3 years.


• The income maximums where the credit starts to phase out is $75,000 for individuals and $150,000 for couples.


• The new law allows a buyer to borrower the down payment from a relative and repay it when they receive the tax credit. In an example, the down payment for an FHA loan is 3.5%. This would cover a purchase price of upto $228,500.

Please contact us for all your real estate questions or needs - we are happy to assist you!