Recent news suggests that law makers are calling for the expansion of the tax credit for first-time home buyers to help increase home sales in Rhode Island and other states extended through 2010.
The current $8,000 tax credit is being offered to first-time home buyers who purchase a home between January 1, 2009 and December 1, 2009. To learn more, please visit http:/www.federalhousingtaxcredit.com/2009/faq.php
There are certain restrictions on the current tax bill that include:
Tax credit is equal to 10% of the sales price or a maximum of $8,000, whichever is lower.
Income cannot exceed $95,000 for singles and $150,000 for married couples.
Must be a first-time home buyer, which includes anyone who has not owned real estate within the last three years.
You must live in the house as your primary residency for 3 years. No payback is required.
Must purchase a home between January 1, 2009 and close by December 1, 2009 to be eligible.
Under the new bills introduced, the following are being suggested:
Income caps being lifted.
Not just first-time home buyers can get the credit.
Tax credit limit extended to $15,000 through 2010.
Separate tax credit of $3,000 for borrowers who refinance.
Law makers are aware that 40% of all purchases are from first-time home buyers and recognize the need to stimulate the move-up Rhode Island and other real estate markets. There is much criticism over whether the bills will pass, as many americans are critical of government spending.
In the meantime, if you would like to take advantage of the current tax credit, please feel free to contact me today. I would be happy to help.
Lynda Mckenzie
Mortgage Consultant
Mortgage Master, Inc.
NMLS#137627/RI license#137627
Direct: 401-524-9796
E-mail: lmckenzie@mortgagemasterinc.com
RI Mortgage
RI loan broker# 95000655LBBo1/RI Lender# 20051876LLBo1
