The dream of the older generation was to pay off a mortgage. The dream of today’s families is to get one! Fortunately, for first time home buyers, a small crumb has fallen out of America’s overly stimulated stimulus package into the hands of the people that have done the right thing consistently, you!
The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law Feb. 17, 2009. In this bill, a first time home buyer is one who has not had any ownership interest in a home in the past 3 years previous to the day of the 2009 purchase. The bill provides for a $8,000 tax credit that would be available to first time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the buyer’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded in the form of a check to the buyer.
This tax credit is the charming better looking brother of the first $7,500 tax credit that had a repayment feature. My advice to those that “got hitched” to the first tax credit they saw, and are mad now that they can’t begin a relationship with the second tax credit is this: Be thankful you’re still part of the family. There are some (including myself) that bought a home before any of these tax credits were introduced. I can only hope to help others take advantage of this money saving feature that I missed out on.
Recently the tax credit has been extended through the end of April 2010. Also, there is a newly minted $6500 real estate move up credit to existing home owners of five years or more. So if your looking to buy a home in the Dallas real estate market incuding Richardson, Garland or surrounding areas. Contact your local realtor today for more information.