Web Site Launched for Home Buyer Tax Credit
The Federal housing tax credit extension was passed on November 5, 2009. This is great news for those looking to buy Atlanta real estate.
Details of the new extension are:
- $8,000 first time home buyer tax credit has been extended to April 30, 2010
- A $6,500 tax credit for “move-up” buyers has been established, and it will also expire on April 30, 2010
- Individuals who have contracts as of April 30, 2010 will still qualify for the credit as long as they close within 60 days
- Income limits for the $8,000 credit have been increased to $125,000 for an individual or $225,000 for a couple
“The tax credit extension provides a great opportunity for first-time and move-up home buyers,” said Joe Robson, NAHB chairman and a home builder from Tulsa, Okla. “Combined with today’s near record low interest rates, the large selection of homes on the market, and very competitive pricing, the tax credit should be the extra incentive needed to get prospective buyers who have been sitting on the fence into the market.”
The National Association of Home Builders (NAHB) has launched a web site that provides detailed information about the credit for first-time and move-up homebuyers. Visit the web site at www.federalhousingtaxcredit.com for basic information about the tax credit and a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.
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Rick creditson | Feb 23, 2009 | Reply
People need to know what they are getting into, especially first time home buyers. And not everybody understands tax and the taxes that goes with buying a home. That is why your post is a very informational one because it somehow orients the people with what comes with buying a home.
D'ann | Feb 28, 2009 | Reply
This site says it does not have to be repaid but the linked website says it does and that the credit is only 7500. I wish the facts could be straight , I mean who’s right
Andy | Mar 1, 2009 | Reply
I am glad to have waited till this year to buy my place. This credit is sure going to come in useful
Laura Everett | Mar 2, 2009 | Reply
D’ann,
The Web site (www.federalhousingtaxcredit.com) has been updated to describe the $8,000 tax credit that doesn’t have to be repaid. It’s a great resource for specific details and to get all of your questions answered.
Neal | Mar 3, 2009 | Reply
So what happens if I bought a house in 2009 but took the 7,500 that has to be paid back. When i did that, the very next week the 8,000 non repayable one came out. Can I ammend my taxes to get the extra 500 and not pay it back?
Patrick | Apr 7, 2009 | Reply
How greedy can you get?… I bought my house at the peak of the market a couple of years ago… and purchased a house well within my means to afford it (unlike the idiots that started all this mess with overextending and subprime mortgages). I get no tax credit, paid more for the house than a current buyer would have to, but at least I got a decent interest rate on the loan. Take the money you were entitled to as part of this stimulus package and quit worrying about 500 bucks.
Tony | Apr 7, 2009 | Reply
I am going to closing on Wed, April 8. Can I claim the $8,000 tax credit on my 2008 taxes? Meaning, if I have have yet to file my 2008 taxes and do so next week, before April 15…will I be able to claim the $8,000 tax credit?
Laura Everett | Apr 8, 2009 | Reply
Tony,
Yes you can claim the tax credit when you file this year. See our most recent blog post regarding the home buyer tax credit for more information:
http://www.atlantarealestateforum.com/home-buyers-can-choose-when-to-claim-the-home-buyer-tax-credit-10429/
Tiff | May 22, 2009 | Reply
My fiance and I just bought a house. I have never owned a home before but he has. Since we are not yet married we did a 2 single persons loan. Can I still get the tax credit even though we are buying the house together?
Carol M. Flammer | May 22, 2009 | Reply
Tiff, Your tax advisor will be able to give you advice on how to apply for the loan or whether you qualify for it.
Stacy | May 26, 2009 | Reply
I’m planning to close on a house 7/31/09.I’ve never owned a home.I will qualify for the $8,000 tax credit and heard some news that we might be able to use this as our downpayment. Do we know when this might be approved yet? Also, will we have to use the entire $8,000 all at once or can we amend 2008 taxes and still receive a refund? Also, will it have to be an FHA mortgage to use as down payment?
Laura Everett | May 26, 2009 | Reply
Stacy,
These are great questions, but, unfortunately, we do not have all of the answers. I would suggest talking to your mortgage loan officer to see if he or she can answer these questions.
Thanks,
Laura
Gail | May 26, 2009 | Reply
I have read that the 8000 can be used as a down payment on FHA loans, but that it will be a “bridge loan” that pays forward the tax credit and so the buyer actually borrows the funds for the down payment. What is that all about? It seems like there is a big catch to the situation – do you end up having to pay interest or other fees? Do you then pay it back when 2009 tax time comes around?
John | Jun 30, 2009 | Reply
I owned a house for 5 years under my name only, me and my wife lived in it as a married couple for only 2 years can we still qualify for this credit on a new house we our about to buy if we put it under her name?
Christy | Jul 8, 2009 | Reply
I sold my house in Oct. 2008 but I have not lived in it since July 2004. I am looking to purchase a house. Would I qualify for this tax credit since the house was not my primary residence for the past 5 years?
Robin | Jul 10, 2009 | Reply
I have just read on a website that was dated at the end of June 2009, that they are thinking about increasing the $8,000.00 to $15,000.00 again and that it may include any home purchasers so that others may be able to upgrade into larger homes due to the fact of marriage, child births, etc. Has anyone else heard this? Just curious – we purchased our first home and closed May 28th. I received word that our check is being sent out today actually – alot faster than we had expected!
Terry R | Jul 15, 2009 | Reply
Hi All, To qualify as a 1st time home buyer it is stated that you should not have owned a home within the last 3yrs. Does anybody know if the 3yrs is measured by tax year or by date? I sold my home on 7/25/2006 so as of the end of this month it will be 3 yrs but I’m not sure if it’s measure by tax year or the actual date you last owned a home? Please help. Thank you, Terry
rochelle | Jul 21, 2009 | Reply
I am suppose to be closing on my home in mid Aug. One mortgage company told me that I would recieve the 8000.00 within 15-30 days of closing. My new mortgage company says that I will have to do this on my 2009 tax returns? which is correct?
kim | Aug 11, 2009 | Reply
I have not owned a home in the past three years, but my husband has. Our condo is only listed in his name. If we buy a house before the end of the year, do I qualify if I purchase the house only in my name?
Gina | Aug 26, 2009 | Reply
Does anyone know if a first time buyer is eligible for the credit if someone else is a non-occupant mortgagor who is NOT a first time home buyer?
Gina | Aug 26, 2009 | Reply
Just to clarify my question, I am wondering if the credit applies when there is more than one mortgagor, and one is a first time buyer and the other is not.
Mike | Aug 27, 2009 | Reply
My wife and I are going to buy a home with our son. My son will the the occupant/mortgage and my wife and I will be non-occupant mortgagors. My son is a first-time buyer, but we are not. Will my son qualify for the credit?
Randy | Sep 9, 2009 | Reply
If two people, not married, purchase a home together, how does the credit work? One person earns less than $75,000 and would qualify for the $8,000. The other earns between $75,000 and $95,000 and would qualfy for a pro-rated credit. Do they each get treated separately as far as the credit?
Terry N | Oct 9, 2009 | Reply
Wow, I’m a terry with the same situation. I sold my house 7/30/06, Am I going to qualify for the 8000.00 tax credit?
Walker | Oct 15, 2009 | Reply
Terry, the irs website states:
“What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.”
http://www.federalhousingtaxcredit.com/2009/faq.php
I’m pretty sure you are eligible, due to the phrase “three-year period prior to the PURCHASE.” If they meant tax-year, they could have said “three-year tax period” or something similar.
IN FACT, if they had meant tax year, then they could have simply stated “three-year period prior to January 1, 2009″ or even more simply, “not owned a principal residence after December 31, 2005.”
Walker | Oct 15, 2009 | Reply
rochelle,
The irs says that you can file an amended return any time during the year if you bought after April 15th, in order to receive the credit sooner. My $8,000 was deposited in my account within about 3 weeks of filing.
Crystal | Nov 14, 2009 | Reply
Hi my ex-boyfriend bought a home with cash 6 years ago, put my name on the deed as Tenants in Common with rights of Survivorship-Unmarried. Then left me, 5 years later, bullied me with layers until I signed my name off the deed. This year 6/2009 I purchased a home with 100% finance.
Is there any way I can get the first time homeowner credit?
John | Dec 25, 2009 | Reply
We relocated to CA in Dec 2008 and rented a house due to falling real estate prices.
We subsequently sold our old house in May 2009. As the market in CA is starting to stabilize we are thinking about buying a house. Would either the $ 8000 first time buyer or $6500 move up buyer programs possibly apply in our situation? Thanks.
Carol M. Flammer | Dec 27, 2009 | Reply
John:
It sounds like you would qualify for the $6500 move-up buyer program. Check with your accountant for details. There is more information and a link to the Federal Housing Tax Credit site on this post – http://www.atlantarealestateforum.com/new-6500-home-buyer-tax-credit-benefits-move-up-buyers-17954/
Andy | Jan 15, 2010 | Reply
Just putting in the claim for this tax credit in my return and found that it has to be manually claimed. Painful, but for 8K it is worth it.
Enkili | Mar 21, 2010 | Reply
Hello,
I have a question about the 8000 dollar tax credit. My wife purchased the house we are living in on March 2007. We are looking to buy a new home here in the next few months but I am not sure if we qualify for the 8000 tax credit. The house is NOT under my name but I read somewhere that if your spouse has a home under their name, then you are not qualified to get the credit. Any help in clarifying this would be appreciated.
Derrick | Apr 16, 2010 | Reply
I plan to purchase a mixed use property. It has a small store with two apartments upstairs. I plan to occupy one of them. Do I still qualify for the $8000 tax credit? I have never owned a home.