Incentives for First-time Home Buyers – $7500
Thursday, November 20th, 2008Atlanta Real Estate – First time home buyers – Homes for Sale in ATL
As you may have heard on the news, there is now a Federal Housing Tax Credit for first-time home buyers. This has been a bit of a mystery for a few of my first-time home buyer clients, so I thought it would be helpful to break it down for my clients and for any others thinking of buying their first home.
FIRST, THE BASICS of the HOUSING TAX CREDIT
1) AVAILABILITY OF TAX CREDIT: This is for first time home buyers ONLY, but there are a few exceptions. Visit Federal Housing Tax Credit for more information or speak to your CPA. Also time is running out! You need to purchase a home in the next few months to qualify (by June 30, 2009).
2) QUALIFYING FOR THE FULL $7,500: If you are married and/or two people purchase a home together, only $7500 will be available — this credit is per house, not per person. Also, as I mentioned above, if you make less than $75,000 (or $150,000 if married), then you will qualify for the full amount.
- What if you make $85,000 per year? You can still qualify for the tax credit / loan, but you will probably only receive about $3000, it will just depend on your adjusted gross income. For tax credit formulas and examples, click here.
- What if you make more than $95,000 per year? The tax credit / loan is not available at this level, unless your adjusted gross income is less than $95,000. This also applies to married couples who have an adjusted gross income of more than $170,000.
- Please be sure to re-confirm this information with your tax professional. He/she will be able to tell you exactly what you will qualify for and/or what your adjusted gross income will be for the tax year.
3) NOW THAT YOU’VE QUALIFIED – HOW WILL THE MONEY BE DISPURSED? There are two simple scenarios, it will just depend on your tax situation for the year:
- Once you file your 2008 or 2009 taxes, you will see if you are getting a refund. Let’s say that you will receive $500 back from the federal government — you will then receive an additional $7500 for a total of $8000.
- Once you file your taxes, let’s say that you owe $3,000. The $7500 will be used to pay the $3000 that you owe the IRS and you will also receive a check for $4,500.
- Again, please be sure to talk to a licensed tax professional or CPA to ensure that you receive the tax credit is correctly dispursed.
3) PAYING BACK THE LOAN: Once you’ve received the tax If you get the full $7500, you would just pay $500 per year for the next 15 years and that would take care of the loan balance. If you sell your home before the end of the 15 year period, the remaining balance of the loan will be due at that time.
FOR A COMPLETE VIEW OF THE FEDERAL TAX CREDIT FOR FIRST-TIME HOME BUYERS, VISIT:
http://www.federalhousingtaxcredit.com/index.html
If you are a first-time home buyer in Atlanta, this is a fantastic time to purchase a home… and I’m not just saying that because I am a real estate professional. Think about this:
ATLANTA HOME VALUES ARE DOWN
+ LOW INTEREST RATES
+ FHA LOANS WITH DOWNPAYMENT OF 3% or LESS
+ $7500 TAX CREDIT
=
GREAT OPPORTUNITY FOR YOU
If you’ve been hesitant to start the search for your new Atlanta home, call a real estate professional in the area you would like to live in and see what they have to say about the local market.
If you are interested in the Atlanta Intown area or Decatur, please call me anytime. I would be happy to provide you with the latest Intown Atlanta home values & market data.
All the best,
Kerry Lucasse
Atlanta Real Estate Consultant
Keller Williams Peachtree Road
(404) 432-1844
** PLEASE NOTE: I am not a tax professional or CPA, so if you have any questions about your specific finances, please contact a tax professional.
This is the 26th year of the 
The 
Downtown Decatur and is going to be another wonderful event. Eight homes will be featured and range in style from Classic Bungalows, cottages and new construction homes — all of the homes have been restored in keeping with the period. In addition to the holiday homes, the Waffle House museum will also be open during the tour. Be sure to stop by the Avondale Estates Holiday Market, as you’ll be sure to find a few special and unique gifts for friends and family.