First Time Homebuyers Tax Credit

On February 17, 2009 President Obama signed The American Recovery and Reinvestment Act of 2009 into law. As part of the bill, Congress has created a new, temporary tax credit to provide an incentive for first-time homebuyers. The $8,000 credit will be available for the purchase of a principal residence between January 1, 2009 and December 1, 2009.

The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit. The limit for married couples is $150,000. The tax credit is "refundable" which means qualified buyers can take advantage of it even if they don't have that high a liability. Buyers have to own their home for at least three years. If they sell their homes before three years the tax credit will have to be returned to the government. (Exceptions will be made in certain cases such as death and divorce.

If you have further questions I can be reach at my home office 301.353.9360 or can be reach by email at HomeMortgageAdvisor@gmail.com

Alan Gross
Senior Mortgage Consultant