The major provision of  The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before November 30, 2009.

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed this legislation that grants a tax credit of up to $8,000 to first-time home buyers. Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

A summary of the key provisions that the First Time Buyer needs to know are:

Who Qualifies?

• First-time home buyers who purchase homes between January 1, 2009 and November 30, 2009.


• To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

 Which Properties Are Eligible?

• The 2009 First-Time Home Buyer Tax Credit may be applied to any primary  residences,  including: single-family homes, condos, townhomes, and co-ops.

 How Much Will the Credit Be?

• The maximum allowable credit for home buyers is $8,000

The Amount of a buyer's tax credit is determined by two factors:

1. The price of the home
The credit is equal to 10% of the purchase price of the   home, up to $8,000

2. The buyer's income 
Single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum  tax credit.

If the Buyer(s)' Income Exceeds These Limits, Can He / She Still Get a Credit?

• Yes, but the credit decreases proportionally for single buyers who earn between $75,000 and $95,000, and for buyers filing jointly between $150,000 and $170,000.  Over $95,000 or $170,000 there is NO TAX CREDIT.

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 the three-year period, the credit will be recouped on the sale.

When can you claim the Credit

• TheTax Credit can be claimed on your 2008 Tax Return (filed April 15,2009), or an amended 2008 Return, or on your 2009 Tax Return.

BREAKING NEWS:

As of May 29, 2009 the US Department of Housing and Urban Development issued a letter authorizing the use of the $8,000 towards a home buyer's down payment and/or closing costs. (This was prohibited in the original Act). It means that HUD will allow buyers to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.

As you can see this is just a summary of the main points of $8,000 First Time Home Buyer Tax Incentive contained in the American Recovery and Reinvestment Act of 2009. The rules change frequently and have restrictions added and removed, so it is important that you check with your accountant and lender as to how this Tax Incentive affects you personally. 

We know that this $8,000 Tax Credit may make the difference in whether you do or do not buy your first home. You can use the form below to request our package of detailed information about the tax credit, an extensive FAQ brochure, and forms and details directly from the IRS.

TAX CREDIT INFORMATION REQUEST FORM

Tell Us About Yourself *First Name *Lat Name Spouse First Name Home Phone Cell Phone *Email *Address Unit# *City *State *Zip Code Let's Talk About the Home You Are Interested In *Buyer Type -- Please select --Primary Home Second Home Investor *What Price Range Do You Feel Comfortable? *What Monthly Payment Do You Feel Comfortable? *Square Foot Range -- Please select --Under 1000 1000-1500 1500-2000 2000-2500 2500-3000 3000-3500 3500-4000 4000+ *Minimum Bedrooms -- Please select --1 2 3 4 5 6+ *Minimum Full Bathrooms -- Please select --1 2 3 4 5 6+ *Master Bedroom Location -- Please select --Up Down *Lot Size Tell Us About the Home You Desire *What Areas Are You Interested In? Paying for the Property *How Do You Plan to Purchase? -- Please select --Cash Mortgage Do You Have A Downpayment? -- Please select --Yes No Have You Secured Financing? -- Please select --Yes No Would You Be Interested in a Mortgage Quote? -- Please select --Yes No When Do You Plan on Moving? -- Please select --Immediately 1-3 Months 3-6 Months 6 Months - 1 Year 1.5 Years 2 Years Long Term Any Info that Would be Helpful Enter the code: