Potential homebuyers may be eager to take advantage of the $8,000 federal tax credit for homebuyers, but they need to understand several important rules about the credit.
Most important: this credit expires on December 1, 2009, which means that all settlements must take place before that date. Since arranging financing and finding a home can take a lot of time, buyers need to be pushing themselves now to meet that deadline.
The tax credit is for first-time homebuyers, which the federal goverment defines as anyone who has not owned a home within the past three years. The ownership rules apply to all buyers, including both spouses for a married couple. The home being purchased must be the primary residence for the buyers.
One confusing element to many buyers is the amount of the credit: It is not a flat $8,000 for any buyer, but rather 10% of the purchase price of the home UP TO $8,000.
The tax credit also has income limitations and phases out completely for buyers with incomes at $75,000 for single buyers and $150,000 for married couples.
Other articles with tips for first-time homebuyers which you might find helfpul include:
Order your copy now of my book "HOMEBUYING: Tough Times, First Time, Any Time" at Capital Books.
Comments