First Time Home Buyer Tax Credit Information!
- This credit is for first time home buyer. According to the IRS a first time home buyer is a person who has not owend a principal residence during the the last 3 years.
- The tax credit is equal to 10% of the purchase price with a max of $8000.00.
- This tax credit Does Not have to be repaid.
- The credit is available for homes purchased before December 1st 2009 - home must be closed on before December 1st.
- If single you must not make over $75,000 a year and if married then combined incomes must not exceed $150,000.
- The tax credit reduces your tax's or increases your refund, dollar for dollar.It is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
- The $8000.00 tax credit is claimed using form 5405.
The credit can be used as down payment for FHA-insured loan. Homebuyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs. Please work with your lender to gain a better understanding of how this all comes together for you as a buyer. If you need a reputable lender recommended we have a few we can provide you who are well versed on this legislation who can educate you on your options.
Jill and Ron Fuhrer
484-241-5185
Prudential Patt White