Buying a Home in Annapolis? The New First Time Home Buyer Tax Credit Can Help
February 25th, 2009 Categories: Buyers, Real Estate News
This Credit Could Be Your Ticket to Owning a Home in the Annapolis Area
Buried somewhere deep in the 1,000+ pages of the new stimulus bill – also known as the American Recovery and Reinvestment Act of 2009 – is a little bonus that Annapolis area home buyers should like: a tax credit of up to $8,000.
I say should like because I’ve been surprised at the number of people who have expressed outrage over not just the credit but the entire package. A few Governors are even threatening to refuse some or all of their shares, on principle, which is fine with me: I’ll be happy to take what they don’t need.
Getting into the Nitty Gritty of the Home Buyer Tax Credit
I’ll save you the trouble of wading through those thousand pages by recapping some of the highlights of the credit below:
- To qualify for the credit, you must have bought a home after January 1, 2009 and before December 1, 2009.
- You must be what the law considers a “first time home buyer” – someone who has not owned a principle residence during the three year period prior to a purchase.
- The tax credit is equal to 10% of the home’s purchase price, up to $8,000.
- To be eligible for the credit, buyers must meet certain income requirements. Eligibility is based on what’s known as your modified adjusted gross income – you’ll be asking your tax preparer about that one.
- If you’re single, and your modified adjusted gross income exceeds $75,000, the credit will be reduced. For married taxpayers filing a joint return, the figure is $150,000.
- The difference between this and the previous $7,500 credit is that this credit does not have to be repaid. (The other was, essentially, a tax free loan).
Will Annapolis Area Home Buyers Take Advantage of this Credit?
I can’t see why first time buyers wouldn’t be all over this (perhaps limited) opportunity. Several lenders I’ve spoken to have already written loans for buyers who are taking advantage of the credit.
One tells me that his borrower is getting gift funds from a relative to purchase a condo; the borrower will then repay the relative when Uncle Sam writes a check after the borrower files his 2009 tax return.
If you’re thinking about taking advantage of this credit, email me at kenhaedrich@gmail.com and I’ll email you a special free report on the 21 Most Frequently Asked Questions About the New Home Buyer Tax Credit.
If you’d rather, email me your home address, and I’ll send you the report and a complete First Time Home Buyer Kit, with everything you need to know about buying your first home.
If you qualify, you don’t want to miss this great opportunity. We’d love to help you take advantage of it. Just call me at 410-507-7222 if you have any questions.
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[...] recently announced $8,000 tax credit for first time home buyers has been a real boost, as [...]