The new and improved home buyer tax credit is official and took effect Nov 9, 2009. The extended and expanded legislation extended the first-time buyer tax credit through May 1, 2010 and includes a tax credit to repeat home buyers.  

Home Buyer Tax Credit Expansion and Extension 

1. The $8,000 tax credit will be extended and available for first-time home buyers through May 1, 2010.
2. A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
3. Prospective buyers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.
4. Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
5. Limitation on the cost of a purchased home is $800,000. 

If you know anyone looking to buy their first Dallas home at a time when prices and interest rates are still down, or if you are thinking of buying another Dallas home and getting the new $6,500 credit please contact me today.

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Dallas home buyers no longer have to wait for their tax return to benefit from the $8000 first time home buyer tax credit. Qualified FHA buyers now have the option of monetizing these funds.Through short-term bridge loans, Dallas home buyers can access the money immediately instead of amending their 2008 tax return or waiting to file in 2009. These home buyers then have the option of adding it to their FHA-required 3.5 percent down payment, covering closing costs or buying down their interest rate. 

Learn how you can take advantage of your Tax credit NOW by visiting TexasHomeCentral.com. Or just give me a call. I’m glad to help.

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As a follow-up to our recent post, Housing Will Lead Us Out Of Downturn, I wanted to bring your attention to a theory of the National Association of Realtors. The NAR believes if all home buyers were to become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory. Read what else the associaiton has to say:

An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase.

NAR estimates only 25 percent of newly eligible households would become homeowners, and does not capture the effect of increased trade-up buying activity. As such, these projections may understate the full impact of a home buyer tax credit.

Learn more about the first-time buyer tax credit and how it effects Dallas home buyers at TexasHomeCentral.com.

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There has been much publicity about the first-time home buyers income-tax credit passed by Congress last fall. But how does this tax credit work and how will it help Dallas home buyers?
 
To qualify for the tax credit, the home buyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.

The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income (MAGI) up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.

If the amount of tax a home buyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.

There is the catch, however, the home buyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit

Home buyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven. 

The tax credit is due to expire in mid-2009. The National Association of Realtors® is lobbying Congress to extend this date, as well as, make the credit available to all buyers and to eliminate the repayment requirement. 

If you are Dallas home buyer, the tax credit may be just what you need to give you the cash needed for a down payment or closing costs. You just need to plan the repayment into your budget. Texas offers numerous first-time home buyer loan programs you might want to consider. Visit TexasHomeCentral.com or give me a call. I am glad to discuss your options with you. 

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