I have great news for both buyers and Sellers. On July 23, 2008 the House passed the “Housing and Economic Recovery Act of 2008”. On July 26, 2008 the Senate also passed the bill and President Bush signed it on July 30, 2008. Maybe one of the most interesting items in the “Bill” is the First Time homebuyer tax credit.
What is it? – Up to a $7,500 tax credit that would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it basically an interest free loan).
Additional guidelines and who qualifies:
• The amount is ten percent of home, not to exceed $ 7,500.00
• Any single family home is eligible (even condos and coops as long as it is your principal residence).
• This reduces income tax for the year it is claimed on your tax return.
• Full amount of credit is available to individuals with adjusted gross income of no more than $75,000 ($150,000 joint). Phases our above those limits.
• Principal purchaser and spouse may not have owned a residence in 3 previous years
• Loan must be paid back to government each year for 15 years interest free.
There are many other ingredients in this bill. Please refer to “Housing and Economic Recovery Act of 2008” for any other information.