Sunday, February 01, 2009

First Time Buyers Tax Credit Info

This just in from a Mortgage lady I refer to:

The $7500 tax credit for first time buyers is a great thing to help stimulate interest. There have been a lot of questions and little clarification. The Tax groups are finally getting some information. Here is a recent clarification:

Unmarried couples get a break on claiming the new credit for home buyers. They can allocate the credit any way they want. Example: If one of the two unmarried purchasers has more than $95,000 of AGI, the credit can be allocated in full to the other buyer. Similarly, if one of the buyers has owned a principal residence in the past three years and thus is not eligible to claim the credit, the entire credit can be taken by the other. The maximum credit is 10% of the purchase price, but not more than $7500. For homes purchased in the first 6 months of 2009, buyers can claim the credit on their 2008 return or they can file an amended return. When filing a joint tax return as a married couple, neither buyer can have owned a home in the last 3 years.

Missouri Housing Development Corporation has come up with a program in which buyers can "borrow" against the $7500, up front, for their downpayment, and pay MHDC back when they receive their funds. Missouri is the first state to come up with a program to get the money up front to help with downpayment.

1 comment:

Richard Stabile said...

Congress has been debating and I believe will pass the 10% or $15,000 tax credit for buyers. This should really help 1st time buyers.
We are all hoping in the real estate business, that the lower rates that are coming in now, along with lenders that will reasonably lend can continue to turn up sales rates. The latest data in some areas are showing a pick up. If the Fed keeps it up we should be able to put on our roller skates.

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