The government’s first-time home buyer program is one of the very few bright spots in a generally lousy real estate climate. We’ve put together a short list of requirements to help people gain a better understanding of the requirements of the program and take advantage of the many benefits the program offers.
- $8,000
Qualified first-time home buyers are eligible to receive up to $8,000 in tax credit or ten percent of the price of their home. To qualify, the home must be the buyers’ principal residence.
- Who are first-time home buyers
For the purposes of this program, the government defines first-time home buyers as someone who hasn’t owned their own home in at least 3 years.
- When the plan is in effect
The tax credit is in effect for homes purchased between January 1 and December 1, 2009 only. However, newly proposed legislation extends the program until December 1, 2010.
- Income limits for eligibility
In order to qualify, first-time home buyers must have an adjusted annual gross income of $75,000 or less and couples buying a home together must earn less than $150,000 annually.
- Commitment
As part of the tax credit program, first-time home buyers must agree to live in their new home for at least three years to qualify for the credit. If they move within three years, they must return the amount of tax credited to the government; however, there are exceptions made for divorce, the homeowner’s death and a few other situations. If you’re thinking of buying a home and taking advantage of the tax credit, right now is an excellent time to do so. However, unless Congress extends the program, your window of opportunity is closing fairly soon so don’t procrastinate! If you are looking to buy a Louisville home, Louisville Properties is here to help. Give us a call today at 502-744-9504.
