New Revised Home Buyer Tax Credit

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. The purchaser has to go under contract by April 30th and close before July 1st, 2010. The income limits have also changed from $75,000 for a single filer, to $125,000. For married filers it has been extended to $225,000, up from $150,000.  One other change that was not on the previous tax credit is the purchase price is limited to $800,000. A buyer must buy a home less than this amount in order to receive the credit.

What is really exciting about the new federal tax credit is the fact that it is being offered not just to first time home buyers, but also move up or repeat buyers. The amount that is being offered to this type of buyer is $6,500. The buyer has to of owned and resided in their home for at least 5 consecutive years out of the 8 years prior to the purchase date. So far over 1.5 million families have taken advantage of the
federal home buyer tax credit.

Here are a couple of other things to consider in relation to the Federal Home Buyers Tax Credit:

• Purchases by dependents don’t count

• Purchaser must attach a HUD-1 settlement statement to their tax return to help combat fraud

• If you make over the income limits you still may get a portion of the tax credit

• Non-Resident aliens can qualify for the tax credit if they have owned a home  in the US, 5 of the last 8 years

• The home must be a primary residence, but includes all types of homes such as single family, condos and townhomes

This latest federal home tax credit will most likely not be extended.  Let us help you with your Atlanta GA home loan so you can take advantage of the new federal tax credit.