Real Estate Tax Credit

The time to buy or sell real estate is today! The 2009/2010 Home-buyer Tax Credit was extended for first time home buyers who sign a binding contract by April 30, 2010 and close on the purchase by June 30, 2010. This tax credit also now includes home buyers by allowing for a $6,500 credit for current homeowners who purchase a new primary residence. This incentive is perfect for those individuals that are looking to expand and purchase a home of their dreams or for ones looking to simply purchase their first home.

Eligibility Requirements

• First time home buyers may qualify for a credit up to $8,000.00
• Current homeowners may qualify for a credit up to $6,500.00
• Current owners will need to have lived in their prior residence for 5 consecutive years of the last eight.
• Credit applies to home purchases under contract by April 30th 2010 and must close by June 30th 2010
• Income limit of $125,000 for an individual and $250,000 for a married couple.
• Homes up to $800,000 may qualify for credit
• If you have not owned interest in a home in the last 3 years you may qualify as a first time home buyer.

The Federal Housing Administration (FHA) also has some programs available for financing your new home. Some programs even allow you to place a smaller down payment than a traditional loan as well as the ability to place your tax credit directly toward an FHA insured home. What does this mean? You, as a first time home buyer, benefit at the time of purchase rather than tax time.

The team at American Dream Real Estate is standing by to answer your questions. You can always ask a Realtor your question through our site or use our contact form. Did we forget to mention that interest rates are at historic lows! What a great time this is to pursue the American Dream!

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