| By now, you'd think everyone who's a first time home | | | | make any changes. Everyone makes changes, and |
| buyer would know about the $8,000 potential tax | | | | this makes it possible for you to hold onto some of |
| credit that's coming from President Obama's stimulus | | | | your money to use for other things. |
| package, the one he signed in February after he came | | | | The amount of $8,000 is actually a misnomer. What |
| into office. Instead, we're finding that people are still | | | | you actually get is 8% per $10,000 of the cost of the |
| surprised by this, and have no real clue of what it is, or | | | | house you're buying. So, if you bought a $50,000 home |
| how it can benefit them. | | | | and you fit the income requirement, you'd only get a |
| When you purchase a home, each year on your taxes | | | | tax credit of $4,000. If you bought a house of more |
| you get to write off all of your interest payments. The | | | | than $100,000 and fit the requirement, then you'd get |
| first full year of home ownership gives you the biggest | | | | $8,000. And, if you live in a state like California, you can |
| bang, then every year after that it goes down. | | | | qualify for even bigger tax credits, as California has |
| This year, on top of any interest payments you get to | | | | added an extra 10% credit per $10,000. |
| write off, the federal government is giving you an | | | | The income requirements are fairly liberal. If you're |
| extra discount if you're a first time home owner. | | | | single and make less than $75,000, you qualify for the |
| They're even giving you a break on that term, calling a | | | | entire thing. If you make less than $95,000, you'll get |
| first time home owner anyone who hasn't owned a | | | | some kind of prorated amount. If you're a married |
| home in the last three years. So, depending on how | | | | couple, you can go up to $150,000 for the full shot, up |
| much home you buy, and what your income is, you | | | | to $170,000 for a prorated amount. |
| have the possibility of getting a drastic amount of your | | | | Thus, this is a win-win for buyers, and it could get more |
| taxes written off. | | | | interesting. A senator from Georgia, with a background |
| Actually, it just got better, as you can how use the tax | | | | in real estate, is pushing for more of a tax credit, up to |
| credit up front as a part of your down payment, or as | | | | 15%; that would be incredible, but I wouldn't hold my |
| the down payment. As it's usually recommended that | | | | breath waiting for it. |
| you try to have a down payment of at least 5% in | | | | This is indeed a good time to look for a new home, but |
| cash to pay at the time of signing your papers, this | | | | you don't have a lot of time. Although it's being |
| could be a great boost to the home owner, as no one | | | | predicted that there might be something similar for |
| moves into a ready made house where everything is | | | | 2010, for this year you have until December 1st to |
| perfect and the way they like it, such that they never | | | | purchase your new house. So, time is ticking; get on it. |