8K Tax Credit

I have heard a lot of questions about the 8k tax credit from the Economic Stimulus Package. I wanted to give some information regarding the tax credit. As always, feel free to contact me with any questions or scenarios. The 8k is not a down payment grant, it is truly a tax credit that will apply next spring when you file your 2009 federal taxes. There a few guidelines that need to be met; the purchase has to close by 11/30/2009. It is for first time home buyers. FTHB is someone who has NOT owned a home the previous 3 years. There are also income limits, as a single, they cannot exceed 75k/yr and as a married couple, they cannot exceed 150k/yr. The 75k and 150k are to receive the full 8k credit. You can go to 95k for a single person, and 170k for a married couple, but the credit will be less than 8k. If you go over 95k single or 170k married, you are not eligible for the tax credit. This program applies to homes, condos and townhomes.

With the new HERA laws in place, which I discuss on this blog, a perspective buyers needs to get the ball rolling now. With all the delays from HVCC and the new disclosures and required QC holds and timeframes, you will need 45-60 days to close after ratification of a contract.     

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