Thursday, August 20, 2009

$8,000 Homebuyer Tax Credit Ends Soon

Money Grabber by woodsy, image ID 1066491Image courtesy of StockExchange user woodsy

Don’t miss out on your chance at the US Government’s stimulus money!

The federal government’s $8,000 tax credit to first time homebuyers is slated to end on November 30, 2009.

There’s talk it will be renewed & extended, but nothing concrete yet.

Contrary to The National Association of Realtors’ commercials, now is not the “perfect time” for everybody to buy a home.  But if you’ve been thinking about it, give us a call. We’re happy to talk about your unique situation and whether it’s a good time for YOU to buy a home, without trying to ‘sell’ you. Many of our recent first time home buyer clients have mortgage payments that are less than their old rent payments.

To be eligible for the tax credit you must:

  • Not have owned a home during the past three years

  • Have modified adjusted gross income of not more than $75,000 (single) or $150,000 (married filing jointly)

  • Use the property as a primary residence

The amount of the tax credit is equal to 10% of the purchase price of the property, and cannot exceed $8,000.  The tax credit does not have to be repaid. (info courtesy of uber-cool lender Mike Moshofsky at PrimeLending, available at and  480-346-8383)

August 25 - edited to add: News is starting to trickle off The Hill in Washington, D.C. that the tax credit is likely to be extended. The Washington Post wrote about the $8,000 home buyer tax credit on Saturday. Their reporter says (emphasis mine, not the WP's):

Bills already are pending in both houses to extend the credit for another year.

Senate Majority Leader Harry M. Reid (D-Nev.)  ...reportedly now favors an extension of the credit.

Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Banking, Housing and Urban Affairs Committee  ... is co-sponsor of a bill with Georgia Republican Johnny Isakson that would raise the credit amount to a maximum of $15,000. Meanwhile, the Realtors and the builders are pushing not only for extension of the credit, but for broadening it to cover all home purchases in 2010.

Stay tuned! When we hear the tax credit has been extended, expanded or anything else, we'll report it here.