The stimulus bill recently signed into law by President Obama includes a windfall for first time home buyers in the form of an $8,000.00 tax credit! The credit essentially amounts to an $8,000.00 discount off the purchase price of a new home!

Here’s how the credit works in a nutshell:

• To qualify for the credit, the new home purchase must be made between January 1, 2009 and November 30, 2009.
• To qualify as a first-time home buyer:
  • The purchaser (and the purchaser’s spouse) may not have owned a home in the 3 years prior to the purchase date of the new home.
  • The new home must be the purchaser’s primary residence.
• The tax credit is subject to the following Adjusted Gross Income (AGI) limitations:
  • Full tax credit if AGI is less than $75,000.00 for singles & $150,000.00 for joint filers.
  • The credit phases out for AGI up to $95,000.00 for singles & $170,000.00 for joint filers.
• Credit Amount:
  • The amount of the credit is the lesser of 10% of the home purchase price or $8,000.00.
• Repayment Obligations:
  • If the home is owned for more than 3 years, NO PORTION of the $8,000 credit is due.
  • If the home is sold within the first 3 years, the full amount of the credit is due upon sale.
• Income Tax Treatment:
  • The credit will be claimed on the purchaser’s income taxes.
  • Any amount in excess of taxes owed will be refunded to the purchaser.

With savings like this, and mortgage rates at record lows, there’s no better time to purchase a new home! Contact Cozy Quarters Realty today to get started on the path to new home.