First-time buyer tax credit

First-time Homebuyer Tax Credit and Advance Loan Program Extended

Date Posted: Friday, November 6, 2009

Today President Obama signed the bill which extended the $8,000 First-Time Homebuyer Tax Credit and Advance Loan Program to April 30, 2010 – giving more consumers more time to receive the refundable tax credit when buying a principal residence.

On the First-Time Homebuyer Tax Credit Advance Loan Programs (TCAL) providing down payment and closing cost financing assistance, It has not been confirmed yet that this program will be extended but Wells Fargo Home Mortgage, LLC is working with each TCAL housing agency to validate which will offer funds past the original end date of Nov. 30 (THDA) with the TCAL loan 2009. Once final I will let you know about the continuation details.

New features make the extension attractive to homebuyers, including:

Feature

Original Program

Extension

Deadline

Must fund by Nov. 30, 2009

The measure is written differently so that a sales contract must be in place by April 30, 2010 – but homeowners have an additional 60 days to close.

Dollar Amount and Eligibility

Up to $8,000 for first-time home buyers (or 10 percent of the purchase price of the residence) if purchased Jan. 1 – Dec. 1, 2009

A FTHB was defined as someone who had not owned a home during the previous three years

Up to $8,000 for first-time home buyers

– OR –

$6,500 for current homeowners who have lived in their current residence for 5 consecutive years and are purchasing their next property

Income Cap

$75,000 (individual)

$150,000 (married couples)

$125,000 (individual)

$225,000 (married couples)

Increases in the cap make the measure available to a broader group of customers.

Purchase Price

N/A

$800,000 or less

Repayment requirement

Must live in home for 3 years or be required to repay the credit

Same

The proposal also provides benefits for military personnel, including members of the Foreign Service and intelligence community. These benefits include additional time to qualify for the tax credit and limits on the repayment requirement.

You can go to the IRS Web site for more general details about the current tax credit.

First-time homebuyers can now take advantage of the tax credit of up to $8,000 now available if you are a qualified first-time homebuyer and purchase a home before December 1^st, 2009.

Highlights:

♦Tax credit for first-time home buyers only (have not owned a home in the past three years)

♦This tax credit does not have to be paid back

♦Must purchase your new home from January 1^st, 2009 through December 1^st, 2009

♦Tax credit is equal to 10 percent of the home’s purchase price up to the max of $8,000

♦Single taxpayers with income up to $75,000 and Married couples with income up to $150,000 qualify for the full tax credit.

This is great because this year the first-time home buyer does not have to repay this like they did in the past provided the home remains their main residence for 36 months after purchase date. For purposes of this credit, you are considered to be a first-time homebuyer if you (and your spouse if you are married) did not own any other primary residence during the three-year period ending on the date of the purchase.

I highly recommend contacting your accountant or visiting the following web sites to get the full details. www.federalhousingtaxcredit.com or www.irs.gov

Feature	Original Program	Extension
Deadline	Must fund by Nov. 30, 2009	The measure is written differently so that a sales contract must be in place by April 30, 2010 – but homeowners have an additional 60 days to close.
Dollar Amount and Eligibility	Up to $8,000 for first-time home buyers (or 10 percent of the purchase price of the residence) if purchased Jan. 1 – Dec. 1, 2009 A FTHB was defined as someone who had not owned a home during the previous three years	Up to $8,000 for first-time home buyers *– OR –* $6,500 for current homeowners who have lived in their current residence for 5 consecutive years and are purchasing their next property
Income Cap	$75,000 (individual) $150,000 (married couples)	$125,000 (individual) $225,000 (married couples) Increases in the cap make the measure available to a broader group of customers.
Purchase Price	N/A	$800,000 or less
Repayment requirement	Must live in home for 3 years or be required to repay the credit	Same

First-time buyer tax credit

First-time Homebuyer Tax Credit and Advance Loan Program Extended

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