March 05, 2009

Your Uncle Wants To Help You Buy Your 1st House

Posted to

The Federal Government has been wrestling with the best way to offer help to the housing market. Most agree that any plan to get the market to improve should start with the first time home buyers. Any increase in sales of these types of homes would have a positive ripple effect.

As a result, a major part of Congress’ effort has been to offer a stimulus to these buyers in the form of a tax credit. This program was in effect last year, and has now been enhanced to offer more help to more people. There are a number of sources on the web that explain what the plan has to offer, but most have not yet been updated to explain the newest benefits.

Here is the best one I have found that has up to date information:

http://www.federalhousingtaxcredit.com/2009/home2.html

What follows is a very basic recap of the plan.

  • You can receive up to an $8,000 tax reduction (which can also be included as a tax refund)

  • The newest plan does not require repayment if you keep the house for three years.

  • It’s for all first time home buyers - those who have not owned a principle residence for three years.

  • It is for people with income of under $75,000 or $150,000 for joint return filers - there are limited benefits for people with higher incomes.

  • Eligible property includes single family residences, condos, and town homes used as a primary residence.

  • The current plan is good through December 1, 2009, so you should start looking soon.

If you would like to see a list of homes for sale in a given neighborhood that may be right for you, use the home finder on my website.

You don’t have to sign up for this service, but you can contact me anytime to get additional information.

Posted By: Mike Pfammatter

Leave a Comment