Monday, August 11, 2008

1st Time Home Buyer Tax Credit

Wow, have I been a bad blogger!! Sorry - I'll work on it. Here's a little article that explains the new 1st Time Home Buyer Tax Credit that's been all over the news... note it is a loan, not a true credit!

Daily Real Estate News August 4, 2008How the New First-Time Buyer Tax Credit Works
Under the new housing bill, home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500.Here’s how it works:
The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.Source: The Washington Post, Michelle Singletary (07/03/08)

Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone)

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