Featured Broker

Troy Springston

With mortgage financing and housing costs reaching all-time lows – this breeds a buyers market.  There are many different financing choices for purchasing a home.  The government is currently offering attractive incentives especially for first time homebuyers.  Down payments can be as low as 3.5 percent with FHA and other assistance organizations. 

 The American Recovery and Reinvestment Act of 2009 gives first time homebuyers a tax credit equal to ten percent of the homes purchase price with a maximum value up to $8,000.  This goes for newly constructed or pre-existing homes, townhomes and condominiums purchased between January 1 and December 1, 2009.  As long as you plan to use the home as your primary residence for three years and have not owned a home in the last three years, you do NOT have to pay back this tax credit. That leaves you with some nice change in your pocket.

Depending on whether you are single or married the tax credit follows these stipulations.  Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

If you bought your first home last year during the time period from April 9, 2008 to January 1, 2009 you are still in luck.  The tax credit is not as stimulating as the one previously described but it still is a great incentive for buyers that need that extra financial help.  The tax credit follows similar guidelines but there are a few differences. The most important thing is that it DOES need to be paid back.  The maximum amount is $7500 instead of the full $8000.  The good thing is that it an interest free loan.  It needs to be paid back starting after the first two years in $500 increments over the following fifteen years.  It is still a great way to buy that new appliance or help pay off some credit card debt.

Troy

If you have any questions on this program, other incentives available or mortgage inquiries, please call me at or e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  Realtors, mortgage agents, builders, etc. should be available to provide you with appropriate details and educated information.  My job is to present you with the strongest and best options available.  When it comes to making one of the biggest financial decisions in your life, let me work for you. About Troy:

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