First Time Home Buyers Tax Credit Good Through May
The government really, really wants people to buy houses. They’re keeping rates low, and they’ve extended the first time homebuyer’s tax credit, again!
To be eligible, the contract needs to be signed by May 1, 2010. The deal needs to close by July 1, 2010, so if you’re thinking of taking the credit via a short sale, you should be in contract in the next 30 days!
If you have not owned a home or a primary residence in the prior three years, you qualify. If you own a vacation home and have not lived in it for 36 months, you may still qualify.
The credit amount is up to $8000, or 10% of the home’s value, whichever is less, so that includes nearly every purchase in Marin.
There is also an existing homebuyer tax credit, which is new. This is for current homeowners that have lived in their current home for at least 5 years.
Both credits phase out based on income. For single taxpayers, it begins at $125,000, and for couples, $225,000. Talk to your CPA for exact information on your particular situation, and whether or not you qualify.
This is a great opportunity for first time buyers, and we expect it to continue to spur demand in the entry level through the first half of 2010.
We put three first time homebuyers into new homes in November, and will put at least one more in in December. Between Pat, Bob, and Rick, we know the entry level inventory extremely well in Marin. Let us know if you have a friend or family member who is hoping to buy for the first time - with interest rates at historic lows, this is an amazing time to do it!
