Tax credit opens doors for first time home buyer and sellers

Tax Credit for first time homebuyer and Current Home Owners
Senate voted on a bill to extend tax credit for first time home buyers. Anyone earning under $125,000 as an individual and $225,000 as a married couple will be eligible for the $8,000 tax credit as part of the stimulus package. Tax credit will enable any buyers that fit the government criteria to purchase a home and receive the $8,000 tax credit back on their tax returns. Or they may be eligible to use the credit towards their closing cost.

Congress also passed another tax credit of as much as $6500.00 for people that already own a primary residence. This directly benefits existing home owners who wish to purchase a new home as a primary residence. Credit is for homes that are purchased under $800,000 and contracts must be signed no later than April 30, 2010 and close before June 30, 2010.

This appears to be the last chance to take advantage of the $8,000 tax credit for first time home buyers, it also is a chance for existing home owners to sell their existing homes and either upgrade or downgrade depending on their circumstances.
If you’re a home owner who has been waiting to sell, this very well could be your chance. The tax credit extensions and add-ons benefit you as a home seller (buyers will be out looking to take advantage)and you’ll have the chance to take advantage of the 6500.00 tax credit for current home owners, as well lower interest rates and low home prices make this a remarkable time to buy. You could also qualify for the FHA loan if your new home will be a primary residence.

If you’re a first time homebuyer who has been sitting on the fence, I would say its time. Don’t let the opportunity to purchase a home pass you by when all is in your favor, low interest rates, homes at their lowest in years, the tax credit, as well as FHA financing that can get you into a home with as little as 3.5% down. FHA will also allow up to 6 % seller assist to help with the closing cost.

Town and Village Realty offers services for first home buyers and sellers.