When A First Time Home Buyer Really Isn’t
February 23rd, 2009 categories: Real Estate News, Relocating
The stimulus package recently signed into law has met with praise and criticism. For some, there’s too many billions being directed at the wrong programs. For others, there isn’t enough, and besides, isn’t it too late for anything to work?
Like most legislation that’s passed, there’s plenty of criticism from both sides of the political aisle. While determining the success of the initiative is perhaps better seen in hindsight, there appear to be a number of bright spots that look promising. One of those is the first time home buyers tax credit.
To begin with, to qualify for “first time” status, you only need to have not owned a principal residence for three years before buying a house. So, do you qualify if you’ve purchased homes before? Well, according to Uncle Sam’s definition, almost anyone qualifies, as long as you have not “owned a principal residence for three years before buying a house.” Of course, that’s this house, the one you’re receiving the tax credit for.
Some of the package’s stipulations include:
1. The tax credit is equivalent to 10 percent of the purchase price of the home. While this figure is capped at $8000, it does not have to be repaid, unless the purchaser sells the home prior to owning it for three years. In that case, the credit must be returned to the federal government.
2. There are income limits for the program. To qualify for full credit, single buyers need an adjusted gross income of $75,000 or less, while the limit for couples is double that amount.
3. The program applies to those purchasing homes in 2009, after January 1, and before December 1.
With mortgage rates and home prices at bargain rates, is this stimulus package the ideal opportunity for home buyers? As they say, isn’t this the “perfect storm“?
