New Jersey First Time Home Buyers will benefit from the $8,000 Tax Credit contained in the new Economic Stimulus Package. Combined with record low mortgage rates Ocean County and Monmouth County, NJ should see a boost in home sales during the spring season.
Key Changes to the Act:
- Tax Credit increased from $7,500 to $8,000.
- Credit is no longer required to be repaid as long home is not sold within three years.
- Expiration date changed to December 1st 2009.
- Home Buyers who use revenue bond financing such as New Jersey’s First Time Home Buyer program and Smart Start Down Payment Assistance will now be eligible for the tax credit.
All of the above changes are in effect for home purchases made between January 1st 2009 and December 1st 2009.
Another important point to remember is the definition of a first time buyer is someone that has not owned a home in the last three years. Many clients that sold their homes in 2005 during the height of the housing boom will be surprised to find out that they may actually be eligible for this credit!
[...] This data indicates that a majority of the transactions may have been eligible for a standard NJ FHA Home Loan. A buyer could have purchased these properties with only a three percent downpayment and a First Time Buyer may have even been eligible for a $7,500 tax credit. [...]
[...] Jersey First Time Home Buyers that utilize a NJ FHA mortgage may also be eligible to use the $8,000 First Time Home Buyer Tax Credit as part of their down payment at [...]