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Save Money on Your Home Purchase
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The Extended Homebuyer Tax Credit
The First-Time Homebuyer Tax Credit* was extended and expanded to homes purchased or under contract by April 30, 2010. The Act:
- Extends the First-Time Homebuyer Tax Credit of $8,000 until April 30, 2010, for first-time
homebuyers. These are people who have not owned a home in the last three years.
- Expands the previous credit to give up to a $6,500 tax credit to current homeowners purchasing
a new or existing home by April 30, 2010. This applies to buyers who have owned and occupied
a home as a main residence for at least five consecutive years during the previous eight years.
Do I Qualify?
The Extended Home Buyer Tax Credit is determined by two additional factors:
Price of HomeCredit may only be awarded on homes purchased for $800,000 or less.
Buyer IncomeSingle buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Homebuyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 6, 2009, please see the guidelines for the 2009 First-Time Home Buyer Tax Credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.
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*The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.
1Offer is valid on purchase transactions closed between 12/1/09 to 4/30/10 and excludes lot, construction, FHA and WHEDA loans. Subject to credit approval. $500.00 offer requires a Premium Checking account; otherwise receive $400.00 off closing costs. See us for details.