8000 tax credit in Maryland

If you are first-time Maryland homebuyer who has put off getting into homeownership, you only have a few short weeks left to take advantage of a fabulous incentive: the $8,000 first-time homebuyer credit.  Because the purchase must close before December 1, you can’t delay any longer. Mortgages are taking over 45 to 60 days to process, so don’t wait. 

Making the first-time buyer credit even more attractive is that FHA is permitting the credit to be advanced to a purchaser to cover closing costs, an interest-rate buydown or to increase their downpayment beyond the 3.5% minimum.  To be a “first-time homebuyer” you may not have owned a principal residence in the three years prior to the date of purchase of the home for which the credit is being claimed.  First-time homebuyers are flocking to FHA mortgages because of their low downpayment requirements (a minimum of only 3.5%) and more liberal loan qualification standards. 

There is an income limit to qualify for the credit.  You must have “modified” adjusted gross income (MAGI) of $150,000 or less if you are a couple filing a joint return, $75,000 or less if you’re single to get a full credit. The credit is 10% of the cost of a home, so a house costing as little as $80,000 is enough to qualify for the full credit.   Since the credit is refundable, the government will pay you the difference if your tax liability is less than your credit amount.  Unlike the first version of the credit, you don’t have to pay it back. 

• The tax credit is available for first-time home buyers to buy a primary residence
• First-time home buyers who purchase a home from the start of the year until the end of November 2009 are eligible for the lower of an $8,000 or 10% of the value of the home tax credit. a tax credit, as opposed to a tax deduction which only reduces your taxable income.
• no repayment required

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