The federal program to stimulate home purchases has less than four months before it expires. Here are some highlights of the “First Time Home Buyer Tax Credit.”
- It applies to home purchases between January 1 and November 30, 2009.
- A “first time buyer” is defined as a person who has not owned a primary residence at any time during the three years prior to the purchase. If married, the three year test applies to each spouse individually.
- The tax credit is calculated at 10% of the purchase price to a maximum of $8,000.
- Your income has an impact upon the amount of credit. A taxpayer with an income greater that $75,000 ($150,000 for married couples) will have the allowance reduced.
In May of this year, HUD added a new element to the program allowing a 1st time buyer to apply the tax credit to closing costs on FHA backed loans (see HUD news release No. 09-072 for details).
For more information visit FederalHousingTaxCredit.com. Call us if you want to be a first time home buyer in Cochise County.
