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Federal Housing Tax Credit

First time home buyers consider the recession to be the best thing as they can take advantage of the new federal housing tax credit scheme.

A federal tax credit up to $8,000 or 10% of the purchase price is now on offer to first time home buyers. $6,500 worth of federal tax credit is being offered to existing home owners.

Who is eligible for these programs?

First time home buyers who have not purchased a home before
Those who have not owned a home for more than 3 years
Newly married couples
Existing home owners who have not been residing in their present home for more than 5 consecutive years.

Deadline dates for the federal housing tax credit program

Homes purchased after Nov. 6, 2009, and before May 1, 2010 are eligible.
Homes that are purchased and subject to a binding sales contract signed by April 30, 2010

Type of homes that gain eligibility

Homes with a purchase price that is less than $800,00
Newly constructed homes
Homes that are up for resale
Town homes
Condominiums and Apartments
Single or Family homes
Homes that are rented and homes that are used as vacation homes do not qualify for federal housing tax credit.

Eligible Income Limits

Home buyers who apply as single or head-of-household taxpayers can apply for the full credit amount of $8,000 for first-time buyers and $6,500 for repeat buyers.

Married couples apply as a joint account should have a combined income of $225,000.

Single or head-of-household taxpayers who earn between $125,000 – $145,000 will receive part credit

Married couples earning between $225,000 – $245,000 will receive part credit

What is required to get started?

Get into the pre-qualification stage of the federal housing tax credit program.

Look into as many home buyer programs before settling on one particular program.
Check with a real estate agent some of the best and affordable homes that are offered.

Look at many homes before you make your final decision

Those individuals earning more than $145,000 and couples earning more than $245,000 is not eligible.
All qualified home buyers are eligible for the federal housing tax credit program and can either claim it in their 2009 or 2010 income tax returns.

The federal housing tax credit facility will not have to be repaid unless the home owner sells or stops using the home as their principal residence, which should ideally be within 3 years after the date of purchase.

These new offers that are being given to boost the economy are much more beneficial to those who are looking to purchase new homes. This maybe the best time to purchase that dream home at an affordable cost. The federal housing tax credit program not only benefits home buyer and home owners but also gives a boost to the real estate market as the recession has swallowed up all the profits.

Some First time home buyers are reluctant to make use of this facility due to lack of information; however, those who have fully understood the system have taken full use of this opportunity and are in hurry to purchase their home and meet the deadline.

Tags: check, credit, Income, market, price, tax

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