$8,000 First Time Home Buyer Tax Credit Extended Until 6/30/2010

President Obama signed the bill on November 6^th, 2009 which extends the $8,000 First Time Home Buyer Credit until June 30^th, 2010. There has never been a better time for a first time home buyer to purchase a home. Home prices have hit rock-bottom, interest rates are at historic lows, zero to 3.5% down loans with 620 minimum credit score still exists, and the government is giving you $8,000 as a bonus. What are you waiting for? Call Jerry Tribuzio at 847-516-5743 and find out how you can purchase your first home today.  

Here are some of the specifics of the new bill:

1. You will qualify for the full $8,000 credit if you purchase a home for $80,000 or more. The credit is 10% of the purchase price below $80,000. 

2. The full amount of the credit is available to individuals who make no more than $125,000 adjusted gross income or couples who make no more than $225,000.

3. You don't have to pay the credit back unless you sell your home within 3 years from the purchase date.

4. This credit only applies to first time home buyers who have not owned a principal residence in the last 3 years.

5. If you are married and either of you have owned a home as a principal residence in last 3 years then neither you nor your spouse qualifies for the first-time home buyer tax credit. However, 2 unmarried home buyers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.

6. You must have a purchase contract signed by April 30^th, 2010 and close by June 30th, 2010 to qualify.

7. You can claim the credit on your 2009 tax return by filing the IRS 5405 Amendment Form after closing on your home and you should receive a check from the IRS within 4-6 weeks. Please consult your tax professional for more advice on this matter.    

8. You can't purchase a home from a relative. A related person includes your spouse, ancestors (parents, grandparents, etc.), or descendants (children, grandchildren, etc.)  

Currently, a "Perfect Storm" of rock-bottom home prices, low interest rates, and the $8,000 Tax Credit exists for first time home buyers but time is running out and before you know it the clock will strike Midnight and it will be May 1st, 2010 and the cash will be gone forever. Furthermore, the real estate market is starting to heat up and home buyers are jumping off the fence. Finally, how long do you think rates will be around 5% for a 30 year fixed loan? Hands down, this is the best time in history to buy your first home.      

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