As the saying goes all good things must come to an end. Unfortunately that is the case with the $8,000 First-time Homebuyer Tax Credit. The program has been a huge success and has helped the housing market rebound from what some people are calling the bottom. With a hard deadline of December 1st 2009 now is the time to get out and look for the perfect Boston Loft you have been dreaming of.
To qualify as a first-time home buyer and get the maximum tax credit you’ll need to read up on the Federal Housing Tax Credits site and see if you meet the definition of a first-time 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. For married taxpayers, the law tests the home-ownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers 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. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
To receive the $8,000 maximum tax credit or 10% of purchase price (whichever is less) a single buyer’s income must be below $75,000 and married couples must have a combined income of less than $150,000.
What can you do to seize this great opportunity?
Make sure you are Pre-approved for a mortgage. The financing process can take the most time and stall your deal leaving you vulnerable to miss the Dec 1st deadline of the Tax Credit. If you need some suggestions please feel free to contact any of the Lofts.com agents for an introduction to an ethical and friendly mortgage professional.
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