First Time Homebuyers $8000 Tax Credit

On February 17th, 2009, the $8,000 tax credit (American Recovery and Reinvestment Act of 2009) was enacted into law. Tens of thousands families have already taken advantage of the credit. In order to get the $8,000 tax credit you must close by December 1st, 2009. You will need to get your Georgia loan in process by the end of September or early October to make sure that you meet the deadline.

One common misconception is you will receive the $8,000 tax credit at closing. This is not the case, you will receive the $8,000 tax credit when you file your 2009 federal taxes. The tax credit as most people know by now is for GA first-time homebuyers, which means you have not owned a home in the last 3 years. Any type of property is eligible. This includes new or resales, foreclosures or short-sales. The tax credit is for up to $8,000 or 10%, whichever is less. There are also income limitations which may cause you to get partial or no tax credit, contact me for more details about this program.

IMPORTANT UPDATE:

Recently Congress extended and expanded the $8,000 tax credit for first time home buyers. The tax credit will be extended until April 30th, 2010.  For more info, see the November 10th blog on extending the $8,000 tax credit and new tax credit for existing home owners.