The $16,000 Advantage
Are you utilizing ALL incentives and programs for first-time home buyers in 2009!
The stimulus plan that President Obama signed into law contains an $8,000 tax credit for qualified first-time home buyers. This credit does NOT have to be repaid to the government, as long as they stay in the home for at least 36 months after the purchase date. A tax credit reduces dollar for dollar the amount of tax owed. A deduction merely reduces the amount of income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the credit, the buyer's income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account.
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Nov. 30, 2009. To receive the credit you must purchase a qualified home before December 1st, 2009 – NOT the end of the year.
NC Housing Finance Agency / FirstHome Program with Down Payment Assistance Program (DAP)
The NCHFA offers other avenues for first-time home buyers with lower incomes (limits apply per county). One is the FirstHome with DAP. This program combines a FHA fixed rate first with the Down Payment Assistance Program (which is a 0% interest deferred second mortgage up to $8,000) that is applied to the FHA down payment requirement and/or closing cost with a minimum investment of $1,000 from the buyer(s). Repayment conditions apply.
This program is for primary resident purchases of SFR – detached, FHA approved Condos and PUDs and new or never occupied double-wide mobile homes, with no minimum loan amount and maximums up to $220,000 for new construction and $210,000 for existing homes. Even incomplete construction up to 75% finished.
Call Rich Ferretti, your Mint Hill NC homes and Matthews NC homes specialist.