Your’re going to give me money and I can have it now?
categories: First time home buyers, Lending, Stuff I like to talk about
Thanks Uncle Sam! As you all have probably heard, there are 2 tax credits available for home buyers right now.
The Federal government is offering an $8,000 tax credit (up to 10% of the purchase price) for first-time home buyers (anyone who has not owned a home in the last three years). To be eligible, you can’t make more than $75,000 per year as an individual or $150,000 per year filing married.
Also, as of May 11th, 2009, the State of Georgia is offering an $1800 tax credit (or 1.2% of the purchase price) which ever is less, for any home buyer. This will be received in installments over three years.
Here is where it gets interesting. First time home buyers can now borrow against their federal tax credit for down payment. The department of Housing and Urban Development recently announced that FHA approved lenders and other governmental agencies / non-profits can advance the amount of the tax credit coming to the buyer with short-term or “bridge loans.”
This is enourmous help for first-time home buyers who may not have the down payment necessary to buy a home. BUT - for the $8000 credit you must purchase a home by November 30th, 2009. The $1800 state tax credit is only for home buyers who purchase by November 11th, 2009.
Real estate will lead us out of this current economic crisis. While in my opinion these tax credits fall far short of what we could have (and should have) done to spur home purchases, it is a great opportunity in the next six months for those thinking about buying a home to make the leap.
