From now until April 30, 2010, first-time home buyers and move-up buyers have another great reason to get on the path to purchasing a new home! The benefit to first-time home buyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500.
At a Glance:
FIRST TIME BUYERS
Credit: Equal to 10 percent of the home’s purchase price, up to $8,000
Credit: Equal to 10 percent of the home’s purchase price, up to $6,500
In addition, buyers have another year to take advantage of the higher loan limit for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac set at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost housing markets. The limit in normal markets will remain $271,050 for FHA and $417,000 for Fannie Mae and Freddie Mac.
PLEASE NOTE: The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation. Purchaser must attach documentation of purchase to tax return.
Please remember to consult with a tax professional for individual eligibility and implications of the Homebuyer Tax Credit. More information can be found at the IRS Tax Credit Website.