By now we have all heard that in an effort to stimulate the U.S. housing market as well as address the economic challenges facing our nation, Congress has passed new legislation that:
· Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. AND, here’s the new part:
· Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
I have been asked a lot of questions about how it really works, so will address these some of these questions here as well as in following blogs this week. Here are some of the basics:
So Who Qualifies?
· First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
· Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
What Property Types Qualify?
Primary residences only! These may include: single family homes, townhomes, condos and co-ops.
Will it have to be Paid Back?
No, if you plan to live in the home for a minimum of 3 years. Should you decide to sell it within those 3 years the credit will be recouped with the sale.
Next I will cover the amount available, income and income limits and begin to answer more indepth questions.
