If you are thinking of buying or building a new home, now is the time with huge tax credits available for a short time.  Read a summary of the details below:

Tax Credit for First-Time Homebuyers:  If you have not owned a home within the last three years may be eligible for the tax credit. The credit is 10% of the purchase price of the home (maximum of $8,000 credit). Both single and married taxpayers may qualify for the tax credit.

Tax Credit for Present Homeowners:  If you already own a home this offers strong reasons to move to a new home. This tax credit of up to $6,500 is for qualified purchasers who have owned and occupied a primary residence for five consecutive years in the last eight years. Both single and married couples may qualify for the tax credit.

New Deadlines:  To qualify for the credit, all Purchase Agreements must be executed no later than April 30, 2010 and close/fund no later than June 30, 2010. Military personnel have special extensions on the timelines available.   This still offers you time to buy a new home, or to potentially build, if you start now!

Why Take Advantage Now:  The tax credit is a dollar-for-dollar benefit, and not just a tax deduction.  It is a dollar for dollar reduction in your tax liability.  Even better, the tax credit is refundable, if you have little or no tax liability, meaning if you qualify for the $8,000 tax credit, and you only owe $1,000, then you receive a check back for $7,000!

Higher Qualifying Income Levels:  Your income qualifying levels went up also!  Single tax filers earning up to $125,000 are eligible for the total tax credit. If you earn more, you still may qualify for part of the tax credit, up to $145,000. Married/Joint tax filers earning up to $225,000 are eligible for the total credit. If you earn more, you still may qualify for part of the tax credit, up to $245,000.

Purchase Price Limit:  If you qualify, the purchase price limit is set to a maximum sales price of $800,000.

Interest Rates:  It is important to consider the current low interest rates that are partially driven down due to the Fed’s Mortgage Backed Securities purchase program, which will most likely end on March 31, 2010. As this program slows down, it is expected that the rates will soon start rising again.

For more information on this very valuable program, visit these 2 informative sites – or call us directly at 505.299.1500 for help:

Home Buyer Tax Credit information from the National Association of Home Builders: 
http://www.federalhousingtaxcredit.com/home.html

IRS.gov’s First-Time Homebuyer Credit information:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html