Home : The New Homebuyer Tax Credit

The New Homebuyer Tax Credit

Posted by Tina Merritt on 11/8/2009 at 7:28 PM
Posted in Real Estate Investing

Blog Image President Obama signed the Homebuyer Tax Credit this week. This new tax credit extends and expands the credit set to expire on November 30th, 2009. The new legislation is effective November 7, 2009 and expires April 30, 2010.

Highlights are as follows:

The first time homebuyer tax credit remains at: $8000.
First time buyer definition of eligibility: must not have owned a principal residence for 3 years prior to purchase
Repeat homeowner tax credit: $6500
Current homeowner definition of eligibility: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Binding contract rule: purchaser will have until July 1, 2010 to close as long as they have a written, binding contract in effect on April 30, 2010
Limitation on cost of home: it was zero, now it is $800,000
Income limitations have gone up as well: single, from $75,000 to $125,000 and married, from $150,000 to $225,000.
Purchase by a dependant: went from n/a to ineligible
Anti-fraud rule: went from none to must attach documentation of purchase to tax return

***Remember, there aren't any restrictions on the type of financing the buyer obtains. Real Estate Investors! Get creative with this...think about owner financing and lease-options closing prior to July, 2010. I'm thinking too and will follow up with you next week on these ideas....

Tina Merritt is an 11 year veteran Real Estate Agent and Trainer based out of Virginia Beach, Virginia. She holds a degree in economics from Virginia Tech and post-baccalaureate from Virginia Commonwealth in real estate and land development. As an avid social networker and internet marketer, Tina helps real estate agents, loan officers and affiliated industries embrace technology. As a real estate agent, Tina primarily deals with marketing and selling properties deemed "hard to sell" and also works with real estate investors helping them build and/or liquidate their portfolios for maximum profit.

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3 Comments

Posted by member1954040 on 11/09/2009 2:33 AM

With the economy that we gave today we must only think of the things that we really need and we must think of the ways on how we are goiung to enjoy life even if we are facing recession. Since we are in the midst of recession lots of people today began to rely for payday loans. But a lot of people complain that all payday lenders lead people into a payday loan trap. It can hardly be stated that it isn't possible – but the number of people in a payday loan trap is miniscule compared to the people in a credit card trap. Going to an installment loan or short term loan lender is just like any other lender – you want to only borrow funds occasionally, and get on a payment plan. The less debt you have, the better – and to avoid getting into a <a rev="vote for" title="Don’t Get Caught in a Payday Loan Trap" href="http://personalmoneystore.com/payday-loans/payday-loan/ ">payday loan</a> trap, you want to budget correctly and spend less than you're used to.

Posted by user28112 on 11/09/2009 3:25 PM

Hi Tina. May you and yours continue to prosper in every good way possible.

Your articles are always so good, thorough, technical and together. Must reads. The new homebuyer tax credit is harder, which is par for the course. But at least its still here. It is much more of a necessity for everyone to do their homework now, although proper homework should be done if only $1.00 may be lost. Thank you for your real estate steadfastness Tina.

Sincerely, your valiant friend and strong "Revolutionary Entrepreneur"
Nimrod (means "Valiant, Strong")

Dr. Nimrod Erech M. Christ Nimrod,
President, Co-founder
Self-Esteem & World Peace Association
Nimrodworldpeace@aol.com.

Posted by member1982261 on 11/10/2009 10:34 AM

This is typical government meddling in a free market, which just makes houses more expensive for everybody.

John,
http://www.canadabanks.net/Loans.aspx

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