Stimulus money for you?
Real Estate Today.
$8,000 TAX CREDIT
This past year your federal government is providing you with money to purchase a home. YES, the program actually works. Let me explain how simple it is to obtain this money when buying a home.
If you are a first time homebuyer and haven’t owned a home for the past three (3) years, you may qualify. The $8,000 tax credit is based on 10% of the sale price of at least $80,000 or less. Yes, you could even receive (depending on your tax obligation to the IRS) an actual refund check less your tax obligation for just purchasing a home. One stipulation is that the home purchase contract must be signed and dated by April 30, 2010 and the loan closed by July 1, 2010 (as always certain credit conditions will apply). You will only need to go to your local lender for their loan approval. After the loan is closed you will have the necessary paperwork to take to your accountant who will file for your tax refund. (Vacation and rental property does not qualify).
The tax credit is a TRUE credit. It does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.
$6,500 TAX CREDIT
The one main difference is that you can presently own a home for the past five (5) consecutive years and obtain a $6,500 tax credit on ANY home purchased at any price. The same purchase and closing dates reflected above apply.
This plan offers those who wish to “downsize” to a smaller home or maybe even want to purchase a larger, can do so. Not only does this allow the existing homeowner a $6,500 tax credit on buying another home but their own home can now be sold much quicker to a new buyer who can also qualify for the same type of tax credit.
It is truly a “Win-Win” situation for everyone but one must make a decision soon before these programs expire and interest rates rise.
Information provided by Ed Neufer of Re/Max Results. For additional details call 260-740-1248.