I’d like to correct one of my earlier posts with more details emerging about the home buyer tax credit. Details are below. There are two new huge improvements to the credit I’d like to point out. First, the income cap for all new home buyers qualifying has been raised for $125,000 for individuals and $225,000 for couples, where previously it was $75,000/$150,000. This will include a LOT more buyers. And second, move up buyers who have lived in their house five years qualify for a $6,500 tax credit. Both of these changes make the tax credit available to tens of thousands of new buyers.
Here’s a summary of the changes for the extended tax credit:
- Income caps for eligibility increases to $125,000 for individuals and $225,000 for couples.
- The tax credit for first-time home buyers (anyone who has not owned in the last 3 years) stays the same as the lesser of $8,000 or 10% of the purchase price.
- Eligible move-up buyers will have had to have lived in their current home for at least five years and the credit will be $6,500.
- The credit runs from Dec. 1, 2009 to April 30, 2010, with an additional 60 day period to close escrow, so you will have to go into contract by April 30th buy can close up to June 30th.
So getting an $8,000 check if you buy before April 30th is a pretty huge motivator. It’s pretty generous. FHA Loans only require 3.5% down, so in many cases you could replenish all of your down payment a few weeks after close when you recieve the tax credit. Or you could use the $8,000 to furnish or upgrade the property. Pretty amazing stuff!
Give me a call or email if you have any questions at all about getting approved for a FHA Loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA specialist)
858-922-7899
You must log in to post a comment.