Real Estate

Click banners below for area listings

Tax credit good reason to buy a home

By CHRIS HENKALINE

Century 21 Sharron Realty Associates Inc.

First-time homebuyers and move-up buyers have another great reason to get on the path to purchasing a home!  The benefit to first-time homebuyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500.  But this opportunity ends in April, 2010.  Here’s how it works;

Between November 7, 2009, and April 30, 2010, homebuyers that have signed a binding contract to purchase a home may be eligible for the tax credit.  The transaction must close no more than 60 days after April 30, 2010. 

First-time homebuyers may receive a credit of 10 percent of the purchase price (up to $8,000).  Consumers who have never owned a home before or have not owned a principle residence in the last three years, are considered a first-time homebuyer.

For the “move up” consumer, a tax credit of $6,500 is available for homeowners who have lived in their current residence for at least five of the past eight years.  Homebuyers can receive a 10 percent credit up to $6,500 when they contract to purchase a home between now and April 30, 2010, and close no more than 60 days after April 30, 2010.

The tax credit does not have to be repaid provided the homebuyer lives in the new home for a minimum of three years. Military families are exempt from this situation.

For additional details, including some new benefits for FHA  loans, go to the National Association of Realtor’s website at www.realtor.org.