Wednesday, February 25, 2009

Home Buyer Tax Credit 2009

Congress has passed the Recovery and Reinvestment Act which includes up to an $8000 tax credit for some home purchasers! The actual tax credit is 10% of the sales price of the home purchased or $8000, which ever amount is less. This is amazing, especially when combined with the extremely low interest rates now hovering around 5% for a fixed rate mortgage!

To qualify for this credit, you must be a first time home buyer or you must not have owned a home over the past 3 years. These qualifications must also be met by your spouse or any co-borrower on the loan. You must purchase the home between January 1, 2009 and November 30, 2009. You will not have to repay any of this credit, unless you sell the home within 3 years. Also, if your tax liability for the 2009 tax year is less than the tax credit you qualify for, then the remainder of that credit is refunded to you! WOW!

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