First Time Homebuyers Tax Credit

The First-Time Home Buyer Tax Credit provides an outstanding opportunity for Home Buyers.  The American Recovery and Reinvestment Act of 2009 authorizes a refundable tax credit of up to $8,000 (10% of the purchase price) for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. The tax credit is only available for eligible first time home buyers.  The IRS defines a first time home buyer as someone who has not had any ownership interest in a home in the 3 years prior to day of the 2009 purchase.  The purchase of the home must be on or after January 1, 2009 and before December 30, 2009 and be used as a principal residence for at least three years. Single taxpayers with incomes up to $75,000 and married couple with incomes up to $150,000 qualify for a full tax credit. The tax credit is equal to 10% of the home's purchase prices up to a maximum of $8,000.  Partial tax credits are available for single taxpayers with income  exceeding $75,000 up to $95,000 and married couples with income exceeding $150,000 up to $170,000. If qualified, the refundable tax credit does not have to be repaid and can be claimed on either your 2009 return or you can amend your 2008 return. When claiming on your 2008 return, the taxpayers 2008 income limit will apply so the buyer will know whether the income limit will reduce their tax credit. Prospective home buyers who believe they qualify for the tax credit can reduce their income tax withholding up to the amount of the credit to enable the buyer to accumulate cash that can then be applied to a down payment. Click Here for printable summary of the First Time Home Buyers Tax Credit. HUD Action Allows Home Buyers to Use 8,000 Dollar Tax Credit for Downpayments on FHA-Insured Loans <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p> RISMEDIA, May 16, 2009-HUD Secretary Shaun Donovan’s decision to allow consumers to use the $8,000 first-time home buyer tax credit to help cover their downpayment and closing costs on FHA-insured mortgages will be a big boost to the housing market, according to the National Association of Home Builders (NAHB). “The biggest obstacle for first-time buyers is coming up with a downpayment,” said NAHB Chairman Joe Robson, a home builder from <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1:place w:st="on"><st1:City w:st="on">Tulsa</st1:City>, <st1:State w:st="on">Okla.</st1:State></st1:place> “We commend Secretary Donovan for acting decisively to enable buyers to access the tax credit at the time of closing. This will help to stimulate home sales, stabilize housing and get the economy back on track. ”The measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply home buyers short-term or “bridge loans” up to the amount of the $8,000 first-time home buyer tax credit. Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility. Previously, the home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. “Secretary Donovan shares our view on the need for a housing and economic recovery,” said Robson. “We appreciate his leadership in moving swiftly to help first-time home buyers to access the tax credit up-front at the time of closing. The timing could not have been better as we are in the midst of the crucial spring home buying season.” The next step is to see how FHA-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lenders to act promptly to put these provisions into place. To qualify for the tax credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.   Get Out and have some FUN This Summer 2009 July July 1 st-5th Battle Creek Balloon Fest Battle Creek Airport (Battle Creek, MI) July 1 st Mixer on the Mall Downtown Kalamazoo Mall July 3 rd Art Hop Various City of Kalamazoo Sites July 8 th Mixer on the Mall Downtown Kalamazoo Mall July 9 th-11th Blues Fest Arcadia Festival Site July 20 th-25th Van Buren Youth Fair Fair Grounds (Hartford, MI) July 15 th Mixer on the Mall Downtown Kalamazoo Mall July 22 nd Mixer on the Mall Downtown Kalamazoo Mall July 23 rd-25th Summer Sidewalk Sale Downtown Kalamazoo Mall July 23 rd-25th Taste of Kalamazoo* Arcadia Festival Site * July 24 th-27th Chopper Fest US-131 Drag way (Martin, MI) July 29 th Mixer on the Mall Downtown Kalamazoo Mall August August 3 rd-8th Cass County Fair Fair Grounds (Cassopolis, MI) August 7 th Art Hop Various City of Kalamazoo Sites August 5 th Mixer on the Mall Downtown Kalamazoo Mall August 6 th-8th Rib Fest Arcadia Festival Site August 6 th-9th Blueberry Fest South Haven, MI August 8 th-15th Kalamazoo County Fair Fair Grounds (Kalamazoo County) August 12 th Mixer on the Mall Downtown Kalamazoo Mall August 19 th Mixer on the Mall Downtown Kalamazoo Mall August 26 th Mixer on the Mall Downtown Kalamazoo Mall September September 4 th Art Hop Various City of Kalamazoo Sites September 11 th-12th Wine Fest Paw Paw, MI September 11 th-19th Allegan County Fair Fair Grounds (Allegan County) Sept. 25 th& 26th Irish Fest Kalamazoo, MI * My personal Favorites! 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