The final day homebuyers can take advantage of the first-time home buyer tax credit is here. The tax credit gives home buyers up to an $8,000 tax incentive and was designed to help jump-start the economy. According to the Internal Revenue Service, nearly 1.8 million households have used the credit as of mid-February.
Last Chance to Qualify for the Tax Credit
As all good things must eventually come to an end, here is a final rundown of who qualifies for the credit:
- To qualify as a “first-time home buyer” you must have not owned or co-owned a home within the three years prior to this year’s closing date.
- Household income is a factor. To be eligible, modified adjusted gross income for single taxpayers can be up to $145,000, and $245,000 for dual-income families filing jointly.
- The new $8,000 tax program also allows purchases financed with state and local tax-exempt mortgage-revenue-bond programs.
- As a first-time home buyer, you should know that your new home must be used as your principal residence (not a second home or investment property).
- If you already own a home, you can still receive a credit of 10%, with a maximum of $6,500. You must have owned your home for at least 5 years, and the same income limits apply.
If you haven’t taken advantage of the credit yet, all is not completely lost.
Today marks the last day to sign a purchase agreement in order to be eligible for the credit. If you have a signed contract in hand by today, you still have until June 30, 2010 to complete the deal and qualify.
Congratulations to everyone who was able to take advantage of this amazing program from the US government! If you missed out on this, keep in mind that there are still some of the lowest house prices in decades, and record low mortgage rates on FHA mortgages and 30-year fixed loans available to you!
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WE WANT YOUR FEEDBACK
Purchased 9 years ago. Sold 7 years ago. Can I still be considered a first time FHA 0 down buyer with 8,000 tax credit?
Signed lease at my apartment for 18 months? Problem?
Lori Johnson
Hi Lori,
As long as you had not purchased a home in the past three years, you were qualified. Unfortunately, the deadline to have a signed Purchase Agreement between buyer and seller to qualify for the first-time home buyer tax credit was on April 30, 2010. However, there are still amazing deals out there for anyone looking to purchase a home. It often makes sense to purchase simply because you are building equity in your property by paying toward a mortgage rather than paying money to someone else each month. Plus, interest you pay toward your mortgage can be written off in your yearly taxes.