$8000 tax credit
First-time home buyers purchasing any kind of home “new or resale” are eligible for the tax credit as long as it is considered a principle residence. This includes single-family detached homes, attached homes like townhouses and condominiums, and manufactured homes.
To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before April 30th, 2010 The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. The purchase price must be less than $800,000 and you must be 18 years of age or older.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000
The income limit for single taxpayers is $125,000; the limit is $250,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $250,000 for married taxpayers filing a joint return.
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.
NEW AS OF 11/2009. Current homeowners looking for a new home can now get up to $6500 in tax credits for buying a new principal residence. You have to have owned your home for the past 5 years but this is a great option for those of you looking to take advantage of the lower prices and get a bigger and better home.
This program is a limited time offer so if you have further questions please contact your mortgage specialist right away.
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Click here to view information from the IRS.
125% Refinance
This is a great expansion of HARP(home affordability refinance program). If you are the owner of a 1-4 unit home, have a loan backed by Fannie Mae or Freddie Mac, current on your mortgage payment for the past 12 months, and the total amount owed on your 1st mortgage does not exceed 125% of the current value of your home, you are ELIGIBLE!
This program allows you to refinance out of a risky loan into a fixed rate or reduce the rate and payment of your current fixed loan. This program does require that you qualify under current guidelines to pay off your existing loan and start a new one. To see if you meet those standards you must apply. There is no cost or obligation to check your eligibility or apply. Get the facts about this program and if it can help you by contacting your mortgage specialist now. It just takes a few minutes and this program may not be around for long. Act quickly.
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