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Monday, March 16, 2009
$8,000.00 FIRST TIME HOMEBUYER CREDIT
Who Qualifies?
The $8,000 incentive starts phasing
out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes
of $170,000 for couples and $95,000 for single filers. To break down what this phase-out means, the National Association of
Homebuilders (NAHB) offers the following examples:
Example 1: Assume that a married couple has a modified
adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount.
Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the
partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.
Example 2: Assume that an individual
homebuyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000
by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer
is eligible to reduce the tax liability by $2,800.
Remember, these are general examples. Borrows should consult a tax advisor to provide
guidance relevant to their specific circumstances.
What Type of Home Qualifies?
The tax credit
is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying "homes"
include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured
homes and houseboats used for principle residence also qualify. Buyers will have to repay the credit if they sell their homes
within three years.
7:46 am est
Thursday, January 22, 2009
Current Rates in Today's Market
Buyers, rates are at an historic low! The right lender may be able to get you a competative rate that will make homeownership
a reality for you. Please let me know how I can help to get you prepared for purchase!
1:46 pm est
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