First Time Homebuyers Tax Credit: 8,000 Reasons To Buy A New Home

I am still surprised how many first time homebuyers still don’t understand that they can get an $8,000 first time homebuyers tax credit. In fact, just this week one of our clients closed on a home and it was the fact that she would get an $8,000 tax credit that actually sealed the deal during the negotiations. Actually, since she was a client of uKeepCommission Real Estate she also received 1% cash back at closing for an additional savings of $2,850 or a total savings of $10,850…not bad for a first-time homebuyer!

Not only that, but first time homebuyers can actually apply for down payment assistance through the state of Florida before they close on their home and then repay the amount when they get their tax refund.

However, first time homebuyers need to act fast. Buyers have until December 1, 2009 to close on a new home in order to receive the tax credit or any down payment assistance.

Here are some other answers to frequently asked questions about the first time homebuyers tax credit:

1. To qualify as a “first time homebuyer” the buyer and his/her spouse may not have owned a home during the three years prior to the purchase.

2. The tax credit may be applied to primary residences only.

3. The maximum allowable tax credit is 10% of the purchase price of the home up to $8,000.

4. Single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit.

5. The tax credit does not need to be paid back to the government as long as the buyer occupies the home for three years or more.

When you combine this tax credit with interest rates that are still low and home prices at rock bottom, there has never been a better time for first time homebuyers to purchase a home.