What You Need To Know About The First Time Home Buyer Stimulus
Passed in the Spring of 2009, President Barack Obamas stimulus package contains some
good news for people who want to buy a home but think they arent able to. First time homebuyers can receive tax credits to help them get into a home. In addition to providing a tax credit, this bill also allows for grants for first time homebuyers that qualify. The hope is that this stimulus will help boost the economy by encouraging renters to begin buying. In addition to being a helpful bill for first time homebuyers, it will also help support real estate industries.There is no pre-existing paperwork that you need to file in order to be part of this stimulus program. The tax credit is filed at the end of the fiscal year and if you qualify youll receive money back on top of your tax refund. If you end up owing taxes during that year, your owed amount will be deducted from your tax credit.
The first qualification for the program is that you cant have owned a home within the last 3 years. If you are purchasing a home as part of a couple, neither one of you can have owned a home within the last 3 years. The purchase of your home must fall between January 1, 2009 and December 1, 2009. The closing date of your home purchase must be within these dates. When you purchase during this year youre eligible for up to $8,000 in the form of a tax credit.
If you purchased a home in between April and December in 2008, you may be able to qualify for another type of tax credit. There was a similar first time homebuyer stimulus bill that was passed in 2008 with slightly different qualifications. The 2008 tax credit had to be repaid, but the 2009 tax credit is yours to keep free and clear.
Youll also need to meet income requirements in order to qualify for the tax credit. A single homebuyer can make up to $75,000 per year and still qualify. If you are buying a home as a couple, you can make up to $150,000 combined income. Individuals or couples who make more than this may be able to qualify for another type of credit based on another formula.
Additionally, youll have to keep the home that you buy under this program for at least three years after applying for the grant. If you end up selling before these three years are up, youll have to pay back the tax credit. You must live in the home that you buy as your primary residence. It goes without saying that the home must be within the United States in order to qualify.
Obamas first time home buyer stimulus plan is a definite incentive to purchase a home, especially in this buyers market. Although the stimulus plan is designed to help buyers who were previously unable to purchase a home, you need to make sure that you can fiscally afford a home. Contact a real estate agent in your area to get started with finding a home to fit this program.
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