| The President's stimulus plan passed in February 2009 | | | | buyer's principal residence during that time period in |
| includes a first time home buyer federal tax credit of | | | | order to avoid having to pay back the money to the |
| $8,000.00 for qualified buyers who purchase a | | | | government. Investors are not eligible for this tax credit. |
| property between January 1, 2009 and November 30, | | | | Jump Starting Home Market |
| 2009. Buyers can claim 10% of the purchase price, up | | | | The government hopes that this credit will have an |
| to $8,000, or $4,000 for married individuals filing | | | | impact on jump starting the home market, and give |
| separately, according to the IRS' Web site. The | | | | buyers the extra tax incentives now which they need. |
| taxpayer has a choice of claiming the credit either on | | | | The FHA loan limits have also been raised now to |
| their 2008 or 2009 tax return which is another great | | | | $729,750 and on reverse mortgages to $625,500. |
| reason to buy a home now and take advantage of | | | | These limits are in effect until the end of the year. |
| this credit. | | | | Statistics show that last year one out of two home |
| If you already filed your 2008 return before you | | | | buyers were first time home buyers so there are |
| purchased a home in 2009, you can file an amended | | | | many buyers who are able to take advantage of this |
| return for 2008 instead of having to wait until filing your | | | | incentive now. Realtors and other industry experts are |
| 2009 return to take advantage of the credit now. For | | | | hopeful this will help the slumping home market and |
| more information or to obtain the appropriate tax | | | | increase home sales. |
| forms, please visit the IRS website. | | | | Other Reasons to Buy Now |
| The new expanded credit replaced the credit under | | | | Other incentives to buy are low interest rates coupled |
| The Housing and Economic Recovery Act of 2008 | | | | with affordable housing and an abundance of |
| which authorized a $7,500 tax credit for qualified | | | | inventory to choose from making this the perfect time |
| first-time home buyers purchasing homes on or after | | | | to purchase a home. Housing prices in many areas |
| April 9, 2008. For those first time home buyers who | | | | have fallen as much as 30% to 50%, and there are |
| purchased a home between April 9, 2008 and January | | | | some terrific bargains out there right now with short |
| 1, 2009, you may be eligible for a federal tax credit of | | | | sales and foreclosure properties (REO's). Now is a |
| up to $7,500. | | | | good time for buyers to take advantage while it is still |
| Definition of First Time Home Buyer Under the Plan | | | | a buyer's market. It's anyone's guess as to how long |
| Under the February 2009 plan, a first time home buyer | | | | conditions will remain advantageous for buyers so for |
| is defined as a buyer who has not owned a home in | | | | those buyers who are sitting on the fence waiting, it's |
| the last three years. Also, the buyer must remain in the | | | | time to jump on board. |
| home for 36 months after the sale, and it must be the | | | | |