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The United States Government recently signed a bill extending the First Time Home Buyer’s Credit. This extension extended the American Recovery and Reinvestment Act which was originally signed into law on February 17, 2009. This extension provides for the purchase of a principal residence signed by April 30, 2010 and settling by June 30, 2010. This extension also includes a $6,500 Tax Credit for some home owners.
Below are some rules and regulations of this credit.
Below are some rules and regulations of this credit.
1st Time Home Buyers - $8,000 Tax Credit
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Extends the tax credit to agreements signed by April 30, 2010 and settled by June 30, 2010.
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Extends all requirements of the $8,000 tax credit of 2009.
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Includes up to 10% of the sales price of the property up to $8,000.
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Persons can not have been a homeowner for the last 3 years.
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Can apply it to taxes for 2009 or 2010.
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Is a tax credit as opposed to a tax write off.
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Income eligibility which has been increased as of December 1 from $75,000 to $125,000 and for a couple $150,000 to $225,000. There is partial payment up to $145,000 for an individual and $245,000 for a couple.
There has been $5 million set aside for the 2nd round tax advance. We can't guarantee this until the customer has all documents to the lender and it’s guaranteed by PHFA and the funds are reserved.
A first time home buyer purchasing new construction can get $6,000 upfront to purchase a home and the loan must go through PHFA. A first time home buyer purchasing an existing home can get $5,000 upfront to purchase a home and again the loan must go through PHFA. Persons will still get the entire $8,000 or 10% of the sales price of the property and if they don’t pay back the amount that was advanced that advance will be transformed into a 10 year loan. Contact me for information and details on the tax credit advance.
Current Home Owners - $6,500 Tax Credit
- Provides 10% of the purchase price up to $6500.
- Is a tax credit as opposed to a tax write off.
- Can be applied to 2009 or 2010 taxes.
- Has income limits of $125,000 for one owner and $250,000 for multiple owners.
- There is partial payment for income up to $145,000 for an individual and $245,000 for a couple.
- Total purchase price must be under $800,000.
- Persons eligible must have owned and lived in a home as a principle residence for 5 consecutive years of the last 8.
- Agreement of sale must be signed by both parties by April 30, 2010 and must settle by June 30, 2010.
- This tax credit goes into effect for any person having a settlement on or after the day the President signed the bill which is November 6, 2009.
There has been $5 million set aside for the 2nd round tax advance. We can't guarantee this until the customer has all documents to the lender and it’s guaranteed by PHFA and the funds are reserved.
A home buyer purchasing new construction can get $4,000 upfront to purchase a home and the loan must go through PHFA. A home buyer purchasing an existing property can get $3,000 upfront to purchase a home and again the loan must go through PHFA. Persons will still get the entire $6,500 or 10% of the sales price of the property and if they don’t pay back the amount that was advanced that advance will be transformed into a 10 year loan. Contact me for information and details on the tax credit advance.
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Mike Klonis
(610) 921-2400 x217
(610) 898-6217 (Direct)
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