Economic Stimulus What First Time Home Buyers Need to Know

By
Real Estate Assistant with Lisa M. Jackson and Associates, LLC

Due to the economic stimulus plan, buying now offers many benefits for first time home buyers. It will be beneficial to you and your clients to make sure that they are educated on the current changes and how they can benefit from them.

1. $8,000 for first time home buyers: The economic stimulus plan includes a tax credit of up to $8,000 for first time home buyers. Not only do you have to be a first time home buyer but they must use the property purchased as their principle residence. The great thing about the $8,000 tax credit is that it does not have to be repaid like the previous $7,500 tax credit.

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Rainmaker
308,767
Anja Kerstens
GRI, CDPE, CHS, ASP, Selling Silicon Valley Real Estate
Summit Realty Group

Lisa,

 

Sorry to correct you here but you are not completely right about this one.  The credit is for first time homebuyers as you state but you can be a first time homebuyer if you didn't owe a home in the last three years.  You are right: it applies only to the principle residence.

 

The tax credit is 10% of the purchase price up to a maximum of $8000 (whatever is lower) and that is important to know especially if your buyers are looking at lower prices homes.

March 28, 2009 12:48 PM
Rainer
19,810
Lisa Jackson
Lisa M. Jackson and Associates, LLC

Anja,

Thank you for pointed that out. I have changed the article to reflect that. If you have any other comments, please let me know.

March 28, 2009 01:10 PM
Rainmaker
308,767
Anja Kerstens
GRI, CDPE, CHS, ASP, Selling Silicon Valley Real Estate
Summit Realty Group

Lisa,

I forgot to mention also that there is an income ceiling.  I was out with an agent in a different part of the state to look for properties for myself and she mentioned that I would be able to take advantage of the first time home buyer tax credit.  I was appalled that she told me that knowing I own a house.  There are plenty of agents that don't know the details but pass on the information as if their clients would qualify.

The income ceiling is $75,000 for singles and $150,000 for couples who file taxes jointly.

 

March 31, 2009 12:22 PM
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Rainer
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Lisa Jackson

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