The $7,500 tax credit that is available for First Time Buyers. Here is an excellent source of information about the tax credit http://www.federalhousingtaxcredit.com/faq.php Please take a look at Q&A #13. It clearly shows that if your buyer is using (or has used) a Mortgage Revenue Bond (MRB) program like CHFA or the Metro Mayors Bond program, They are NOT eligible for the $7,500 Tax Credit.
However, if your first time buyer is using a regular FHA, Conventional, or VA loan, they are eligible for the $7.500, even if they are using a community 2nd like CHAC or Aurora HOAP. This $7,500 is a NO INTEREST loan and must be paid back over 15 years but it is a great incentive to get them into a home. Remember that interest rates are still in the low 6% range and there IS money out there to lend.
I look forward to any questions you may have and I would like to wish you a Very Happy Thanksgiving
Monday, November 24, 2008
Saturday, November 22, 2008
$7500 Tax Credit for You!!!!!!!!!!!!!
As we approach tax time, the following information on the $7,500 first-time homebuyer tax credit might be something you want to consider and send to some of your family members and/or friends.
Good news for first-time homebuyers...This year the President signed a new major housing bill (H.R.3221) into law. As part of this housing bill, Congress has created a new, temporary tax credit of up to $7,500 to provide an incentive to purchase a home for first-time homebuyers. To take advantage of the credit, buyers must purchase a home between April 9, 2008 and June 30, 2009. The tax credit, which is calculated as 10% of the purchase price of your new home and capped at $7,500, can be claimed on your income tax return when you file. For purposes of this tax credit, a first-time homebuyer is someone who has not owned a principal residence in the past three years. It's that easy.
Sound good so far? Here's the nuts and bolts... The tax credit is actually a 0% interest loan, payable in equal payments over 15 years. In other words, if you are eligible for the entire $7,500, then you would pay $500 back each year beginning two years after the credit is claimed. If you sell your home before the 15 years are up, you will owe the balance from the capital gains on the home sale. If there are no gains on the sale, the remaining balance will be forgiven.
The full $7,500 is available to single filers who earn up to $75,000 per year and married filing joint filers who earn up to $150,000 per year. Partial credits are available up to $95,000 for single and $170,000 for married filers. Also, if your purchase occurs in 2009, you can choose to use your income in either 2008 or 2009 to take advantage of whichever year will yield a larger credit. Additionally, if you have little or no federal income tax liability, the government can still send you a check for a portion or even all of the amount of the refundable tax credit. Be sure to consult your CPA on all tax matters.
Feel free to call if you have any questions.
Brian Bacon
Bacon Ent., Inc.
303-301-7133 direct
303-905-5002 cell
303-736-4093 fax
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