$8000 First Time Homebuyer Tax Credit Myths

8000 First Time Homebuyer Tax CreditEveryone has heard about the 1st-time Homebuyer Tax Credit, but what most people want to know is:  ‘Am I eligible?’.  First let’s look at some common myths about The $8000 First Time Homebuyers Tax Credit:

  • The $8,000 tax credit is for 1st-time homebuyers

Not true, you just can’t have owned a home in the last 3 years.

  • The tax credit does not have to be repaid

True, but only if you stay in the home 3 years after purchase.

  • Only single family homes qualify

Not true, condos and townhomes also qualify, but they have to be your primary residence.

  • The  tax credit is only available if I use a 1st time homebuyer programs such as FHA or USDA

Not true, you can use any type of loan, conventional or government.

Now let’s look at who qualifies.  If you are a first-time homebuyer (have not owned a home in 3 years) and buy a home between now and December 1st, 2009, chances are you qualify. Anything else you need to look out for?  YES – Income limits.  If you are single your income cannot exceed $75,000.  If it does, then you may be entitled to a partial refund, but only if you make less than $95,000.  If you are married, you income cannot exceed $150,000 and the partial amount up to $170,000. Keep in mind that while $8000 Tax Credit is a catchy term, the tax credit is actually for 10% of the purchase price up to $8000.

December 1st, 2009 is approaching fast so take advantage while you can.  Remember, you have to close by December 1st, not just be under contractDon’t wait until it is too late.

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