$8000 Tax Credit

It is not too late to benefit from the federal tax credit for homebuyers.  The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers and now includes a tax credit of up to $6,500 for qualified repeat home buyers.

$8,000 First-time Home Buyer Tax Credit at a Glance

•    Who is eligible? The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

•    How much can I receive? The tax credit is equal to 10 percent of the home ís purchase price up to a maximum of $8,000.

•    What are the effective dates? You must contract on your new home before April 30, 2010 and you must close by June 30, 2010.

•    Do I have to repay the $8,000? The tax credit does not have to be repaid.

For more information, visit www.federaltaxhousingcredit.com

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

•    Who is eligible? The $6,500 tax credit is for buyers who have owned and lived in their previous home for five consecutive years out of the last eight years.

•    How much can I receive? The tax credit is equal to 10 percent of the home ís purchase price up to a maximum of $6,500.

•    What are the effective dates? The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010 and you must close by June 30, 2010.

•    Do I have to repay the $6,500? The tax credit does not have to be repaid.

For more information, visit www.federaltaxhousingcredit.com

This is not a representation or guarantee of loan qualification, affordability of homeownership, eligibility for or receipt of a federal tax credit, state tax credit or any other tax benefits of homeownership. Eligibility requirements are different for each program. Income limitations, ownership conditions, repayment requirements, and other restrictions and requirements apply. Tax laws are subject to change. To qualify for the federal tax credit, homebuyers must purchase their home before May 1, 2010, and close escrow before July 1, 2010. $8,000 federal tax credit is for first-time homebuyers or anyone who has not owned a home in the last 3 years. $6,500 federal tax credit is for current homeowners who have owned and lived in the same home for 5 consecutive years out of the past 8 years.* To qualify for the tax credit, the purchase price must be less than $800,000. Federal tax credit applies over a one-year period against your tax obligation. Since individual tax and financial circumstances will vary, see your financial and tax advisors for details and information on the tax credit, and learn more at  www.federaltaxhousingcredit.com.