Below is a Q and A from the National Association of Home Builders (NAHB) website about the tax credit, www.federalhousingtaxcredit.com. Thanks NAHB!
- What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
- How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
- Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts. Read More →
In what feels like great relief after a hard fought battle, the House of Representatives voted almost unanimously this morning (403-12) to extend the existing first time homebuyer tax credit. Here are some of the details:
“The new tax credit extends the existing credit for first-time homebuyers, worth up to $8,000, and offers a new credit of up to $6,500 for some existing homeowners. Read More →
There are still many great deals to be found
For the last few months, several different organizations and politicians have been lobbying to have the first time homebuyer tax credit extended – and the National Association of Realtors has been at the forefront of this effort. While we in the industry have been hopeful, we clearly have not wanted to get our “hopes up” or those of our clients. The last several months we have seen a definite increase in closed sales, but in September, we saw the first decline in new home sales since March. Industry experts say that this is due to uncertainty about the tax credit – and no matter how you look at it, the credit has indeed stimulated at least the first time homebuyer price range of the market.
Justifications for extending the credit include it’s obvious positive impact on the market, and the fact that as of yet, not as many homebuyers have been able to take advantage of the credit as the lawmakers had hoped. Wednesday, October 28, 2009, senators agreed to extend the credit. The bill still has yet to be passed – and then it will have to go through the House, although House leaders have expressed support for extension of the credit. Read More →
When I am showing homes to prospective buyers, they often have many questions about the different architectural styles evident in our City. Here is a brief description of some of the common types of architecture and some pictures to help jog your memory the next time you are wondering what kind of home you are staring in awe at!
Tudor Style
This romantic home style evokes a sense of old England. American Tudor style homes are built with visible timbers exposed as a design element (usually not structural, but decorative), with steeply pitched rooflines, and may have ornamental windows and leaded glass. These homes almost always have an exterior of stucco or brick. Tudor homes were typically built from the late 1800s through to the 1940s.
Tudor Style 1
Tudor Style 2
Read More →
There are a lot of great reasons to buy right now, but one of the most incredible advantages for first time homebuyer’s is the tax credit that was passed in recent months as part of the Recovery and Re-investment Act. You have most likely heard of this, but a lot of people aren’t sure how it applies to them!
Previously, the first time homebuyer tax credit allowed up to $7500, was in effect until July 1, 2009, and actually had to be repaid over 15 years, at no interest. Essentially, it was an interest-free loan (still a great thing – but not exactly a ” tax credit!). With the new law, the credit has been changed to 10% of the sales price or $8000 (whichever is lower), has been extended to December 1, 2009, and does not have to be repaid unless you sell your home within 3 years of purchase. Read More →
