Loan Modification

Can I Still Get the New Home-Buyer Tax Credit of $8000?

By Peter Orville, New York Consumer Attorney

You can still get the tax credit for buying a new home, but time is running out.  The much heralded tax credit for new home buyers was extended in November 2009. The tax credit is available to both first-time home buyers and homeowners who have owned their home for five years.

First-time homeowners will receive an $8000.00 tax credit, so long as they purchase the home before April 30, 2010. Homeowners looking to purchase a new home that have resided in their current home for five years will receive a tax credit of $6500.00, if the purchase occurs before April 30, 2010. For current homeowners, you must have both owned and lived-in your home for at least five years to be eligible for the tax credit. Also, if you sell the new home in less than three years, you will be required to repay the tax credit.

There are some upper limits on the availability of the tax credit, both in terms of the home buyer?s income and the cost of the new home. For individuals looking to purchase a home, you will only be eligible for the tax credit if you make less than $125,000.00. If you are married, the income ceiling rises to $225,000.00. No matter whether you are buying individually or as a married couple, the home you purchase cannot cost more than $800,000.00 to be available for the tax credit.

As home prices continue to plummet, if you are going to buy, you should think seriously about purchasing before April 30, 2010.

Related posts:

1. IRS First Time Homebuyer Credit Top Ten List
2. Credit Unions Fight Judicial Modification of Home Loans
3. Home Equity Line of Credit not guaranteed after Bankruptcy

Full post as published by Mortgage Law Network on February 27, 2010 (boomark / email).