First Time Homebuyers can be
helped by the newly signed Housing and Economic Recovery Act of 2008
in the form of a tax credit of $7500.
This credit is
available to first time homebuyers (this includes anyone who has not
owned a principle residence for the past 3 years) and who's modified
adjusted gross income falls below certain limits ($75000 for an
individual or $150000 for a couple.) The tax credit will be a
direct deduction of the amount of tax you owe for the year it is
claimed. You should contact an accountant for exact
interpretation of this law. What a great help this
would be in that first year of adjusting to owning a home. in the form of a tax credit of $7500.
It is my understanding that the tax credit will need to be paid back so it is not a grant but more of an interest free loan. You will begin repaying the credit two years after you take it. Your $500 per year payments will be due with your income tax return and will continue until you sell the house or pay off the credit. If you sell before the full amount is paid off you will owe the rest of the credit back if you sell at a profit. If you do not make any money on the sale the remainder of this credit will be forgiven.
You must purchase a home before July 1, 2009 so you really should get moving. This is a great reason to consider going ahead with the purchase of that new home! I know a lot of you have been hesitating with the uncertainty of the market but I would not want you to miss out on this opportunity. Inventory of available homes are up, interest rates are still low, and it is a buyer's market.
For more information on what this can mean to you please contact me. Working with an experienced buyer's agent can help you to choose what is best for you. If you are looking for a home in Orange, Ulster, or Sullivan County NY I would love to be your Buyer's Agent. If you are looking elsewhere I would love to find someone in your chosen location to help you. Give me a call or send an email today.
I'm Paddy Pizappi - Work
the Me and You'll be Happy!
845-800-7086
