There has been lots of questions about the tax credit for First Time Home buyers.  The video below gives you a detailed explanation of this credit!

 Summary of the video

• First time home buyers are identified as a person who has not owned a home as their primary resident for the past 3 years
• Qualifying homes are new homes, existing homes, condos or townhomes
• Individual will only qualify for the tax credit as long as the home they is their primary resident and haven't owned a primary in the last 3 years.

Running the Numbers

The tax credit is 10% of purchase price up to $8000. The amount of money you can qualify for is related to amount of money you earn.  below is a breakdown of how it works

• Single Home Buyers earning $95,000 or less qualify. if you make $75,000 or less you qualify for the full $8000. The credit phases our gradually between $75000and $95000 of income. For example if you earn $85,000 you will earn up to half the credit or $4000.
• The same rate applies to Married and Joint buyers whose income limits double to $150,000 - $170,000.   The credit phases out gradually between $150,000 - $170,000. for instance at $150,000 and under you would receive up to the full $8,000 credit, while you if you are making $160,000 you will earn up to the $4000 credit.

 Couple more points to consider

• This credit is for First time home buyers that purchase a home Between January 1 2009 and December 1 2009.
• Historically low interest rates make this an amazing time to buy.
• If you are committed to purchasing a home this year consult your Certified CPA to see what your options are with this credit

If you are looking for this opportunity please call your trusted Real Estate Consultant today.