If you haven’t owned a home in the past three years, 2009 could be your lucky year. In addition to a wide variety of homes at low prices to choose from, and record low interest rates, the federal government will give you $8000 off your income tax bill if you buy a home in 2009!

Here are a few of the specifics:

1. All principal residences (homes, condos, townhomes, manufactured homes, etc.) are eligible.
2. The $8000 credit is effective for purchases made between January 1 and December 1, 2009.
3. A first time homebuyer is defined as someone who hasn’t owned a principal residence in three years previous to the purchase.
4. Unlike the previous plan that ended in 2008, the credit is not a loan – you don’t have to pay it back (unless you sell the house within 3 years of purchase).
5. There are annual income limits: $75,000 for individuals; $150,000 for joint returns.   
6. If you don’t have $8000 in income tax liability (including your withholding), the federal government will pay you the difference just like a typical tax refund.
7. The actual credit is 10% of the purchase price up to a total of $8000. If you were fortunate enough to buy a home for $70,000, your tax credit would be $7000.

This really is a terrific program for people who qualify!  For more information on this program including a very good sheet of Frequently Asked Questions, go to

http://www.federalhousingtaxcredit.com/

And to get prequalified for a mortgage and/or start house hunting, please contact any agent you know in our office, or for an agent recommendation, click here.

For first-time homebuyers, this is found money. Go for it!