Due to recent confusion , here is how the FHA $8000 tax credit plays out according to the best of my knowledge and research.
Effective date- Good thru Dec. 1, 2009
Amount of credit– lesser of of 10% of the home bought or $8000
Eligible property- Any single family residence (including condos), provided it will be used as a primary residence.
Refundable- The $8000 tax credit is a clean refundable credit, unlike the one that was passed last summer, which required a repayment. If you qualify as a fiirst time buyer (havent been a homeowner in the last 3 years), then you can claim the credit. If the $8000 is greater than the tax you owe, then you will get a refund for the difference.
Income Limits- AGI of no more that 75k (150k on a joint return). A home buyer with an AGI above that level and up to 95k (170 on a joint return ) is eligible for a reduced tax credit.
Repayment- THERE IS NO REPAYMENT OF THE CREDIT
As always, I am a mortgage guy who tries his best to get the correct info out to the public. Please consult with your other professionals for further clarification.
