Friday Five: Homebuyer tax credit

By: Brad Horner

Homebuyers only have about one month left to take advantage of the homebuyer tax credit…and considering it takes approximately one month to close on a home, the time to submit a contract is NOW!

Below are the top five things to remember about this unique opportunity:

1. An $8,000 tax credit is available for first-time homebuyers (defined as someone who has not owned a principal residence during the three-year period prior to the purchase) and a $6,500 tax credit is available to move-up/repeat homebuyers (buyers who have owned and lived in their previous homes for 5 consecutive years out of the last 8 years).
2. The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
3. Home contracts must be signed by April 30, 2010 and the purchase must be completed by June 30, 2010 in order to qualify.
4. The tax credit applies only to homes priced at $800,000 or less.
5. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more information about the homebuyer tax credit, click here.