If you haven’t heard about the $8,000 first-time homebuyer tax credit, then it’s time to find out if you qualify for this mortgage downpayment assistance program.
Here are some details of this housing tax credit for first-time homebuyers:
1. The maximum downpayment assistance that can be given is 10% of the house’s purchase price, or a maximum of $8,000. This is for the purchase of a primary residence.
2. If you’re wondering what a first-time homebuyer is, it’s someone who hasn’t owned a primary (principal) home within the last three years. If you’re making the jump from rental housing, this may be the perfect program.
3. Income limits apply, with a $75,000 annual salary for single taxpayers and $150,000 for married couples who file jointly. If you have a modified adjusted gross income that exceeds $95,000 for singles and $170,000 for married couples, the credit will be reduced on a sliding-scale calculation.
4. The government can assist those who are financing their mortgages with a federally insured loan by applying their credit immediately. Nonprofit and FHA-approved lenders can set up short-term loans to buyers for the amount that will be considered as their refund.
5. Taxpayers can apply the credit against their 2008 return, if they file an amended return.
6. The seller cannot be closely related to the buyer.
The deadline for the tax credit is on December 1, 2009. Even though its months away, the paperwork for mortgages take time so you should act right away.
Sign up on the box at the right to receive various sources of financial help to make your mortgage payments more manageable.
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[...] 2009, a first-time homebuyer’s tax break will be available. You can claim up to 10% of the house’s base price, up to a maximum of [...]
Posted on February 3rd, 2010 at 1:29 pm