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Bring the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market, Congress passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. The $8,000 tax credit provision has been wildly popular but time is running out. The tax credit ends November 30, 2009.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

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.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

• The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

• The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the First Time Homebuyers $8,000 Tax Credit.

The $8,000 tax credit provision to first time homebuyers has been so wildly popular but time is running out. The tax credit ends November 30, 2009.

How Do I Get Started?

Contact an Executive today to match you with your first home and start the buying process.  For more information about the 2009 First-Time Home Buyer Tax Credit, download the National Association of Realtor’s overview here.