After weeks of reporters jumping the gun and claiming several different versions of the First Time Home Buyer extension/expansion program had already been approved, we now have a finalized bill signed into law by President Obama on November 6, 2009. Not only has the original $8,000 First Time Homebuyer Tax Credit been extended through to April 30, 2010, but existing California home owners who purchase again (move-up buyers), who qualify, will get their pockets stuffed with $6,500 cash when they purchase a home. Move-up buyers will not be required to sell their existing home to qualify for the credit.
To receive a Priority Buyer Status Approval from a Professional Loan Officer on a California No Down Payment Home Loan, FHA ½% Down Payment Home Loan, or a traditional FHA 3.5% Down Payment Mortgage, call me at (951) 332-7864 or complete a quick loan application on my website @ www.9651MortgageCoach.com.
What I’m most excited about is that California’s Military personnel who are or were deployed overseas for a minimum of 90 days in 2008 or 2009, will have until April 30, 2011 to claim the tax credit. This is a great additional benefit for our Military personnel who live in San Diego, Riverside, San Bernardino, Orange, and Los Angeles Counties.
Here are Highlights and/or Changes of the New Tax Credit Legislation:
• The home buyer tax credit expansion of $6,500 for existing California homeowners is available to those who have lived in their current residence for a consecutive five-year period
• The new bill also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000
• The maximum allowed home purchase price is $800,000
• A home buyer must have an executed sale agreement in hand by April 30 and close escrow by June 30, 2010
• Anyone who collects either tax credit and sells the home within three years of buying must return the refund
• Buyers can’t purchase the home from a parent, spouse, or child
• Buyers can’t purchase the home from an entity in which they’re a majority owner
• Buyers can’t acquire the home by gift or inheritance
• All parties to the purchase must meet eligibility requirements
• The credit is 10 percent of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns
And remember, the First-Time Home Buyer program grants a tax credit as opposed to a deduction. This means that a tax filer will receive an actual check from the IRS/U.S. Treasury for $8,000 if he eligible for all $8,000 available under the new law.
The complete list of qualifying criteria is posted on the IRS website. Be sure to review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010. That’s only five months away.
To explore home loan options with a Licensed Professional Loan Officer (that’s me), call (951)332-7864, email brad(at)951MortgageCoach.com, or visit my website www.951mortgagecoach.com
