For almost two years, the Federal Goverment has offered first-time home buyers a tax credit if they purchase a home.  The parameters of the tax credit have changed quite a bit from 2008 to 2009 so there is a good chance that you are swimming in a sea of information on the internet.  To help break it down for you, to follow is a quick overview of the different programs:

 Summary of the First-Time Homebuyer Credit

2008: First-time home buyers would receive a tax credit of up to $7,500.  The credit would be PAID BACK to the government every year at tax time for 15 years (i.e you would pay back $500 per year). 

January thru November 2009: First time home buyers receive a tax credit of up to $8,000.  The credit DOES NOT need to be paid back.  Qualifying buyers must not make more than $75,000 per year ($150,000 for a married couple).  Buyers must PURCHASE their property by November 30, 2009.

December, 2009 thru April, 2010: First-time home buyers receive a up to $8,000 for first-time buyers, the credit DOES NOT have to be paid back.  Qualifying buyers can make up to $125,000 per year ($250,000 for a married couple).  Buyers must be UNDER CONTRACT on their home by April 30, 2010 and CLOSE (i.e. purchase) home by June 30, 2010.

A NEW INCENTIVE FOR CURRENT HOMEOWNERS (i.e. REPEAT HOME BUYERS)

Nov 7, 2009 – April 2010:  Home buyers who have lived in their home for 5 of the past 8 years can get up to $6,500 if they purchase a new home.  As above, the home buyer does NOT need to pay back the credit!  The new Federal tax credit is also known as the “Repeat Buyer” or “Move up Buyer” Tax Credit.  >>> GET MORE INFORMATION ABOUT THIS TAX CREDIT

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  Thank you for visiting our Atlanta Georgia Real Estate Blog!

Posted by:  Kerry Lucasse – Atlanta GA Real Estate Agent – Atlanta Home Search Team
The ATL Home Search Team is part of Keller Williams Realty,
specializing in Intown Atlanta Real Estate, Foreclosures and Bungalows & Historic Homes

CALL US ANYTIME AT 404.432.1844

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CONGRATS to first-time home buyers Ben & Laura!  They just purchased a bungalow in East Lake (near the popular Oakhurst Village). 

Their 1920s brick bungalow has gorgeous hardwoods, an open floor plan and a fully renovated kitchen.  It would have sold for at least $35,000 more just a few years ago, but Ben & Laura were very savvy “first timers” and immediately knew it was the perfect home for them.  

Not only do they have a gorgeous new home at an exceptional price, Laura & Ben have a low interest rate on their mortgage AND they qualify for the $8,000 first-time home buyer tax credit.  

If you are thinking of buying your first home, the clock is ticking!  Please don’t miss out on this once-in-a-lifetime opportunity.  To qualify for the tax credit, you need to purchase your home by November 30, 2009.

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POSTED BY:  Kerry Lucasse  - Keller Williams Realty – 404.432.1844

Intown Atlanta Neighborhoods – East Lake Atlanta Homes - Oakhurst Decatur Homes

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Atlanta Real Estate – First time home buyers in Atlanta

Congrats to Lisa & Sean!  We are SO thrilled that we were able to work with them to find their first home.

This charming Candler Park / Lake Claire home was the perfect candidate for an Atlanta  first time home buyer… and because it was priced correctly and the home was in one of the most popular neighborhoods in Atlanta, there were multiple offers on the home in the FIRST WEEK!

If you are thinking of selling your Atlanta or Decatur home and it is priced under $350,000, this August and September will be a fantastic time to put it on the market, as the first time home buyers are trying to find that perfect home before the November 30th deadline for the $8000 tax credit. For information on my home marketing strategy, please don’t hesitate to call me at 404.432.1844.

If you have been looking for a home in Atlanta’s Little Five Points neighborhood, don’t worry, I’m sure your dream home is just around the corner!  Click on the links below to search by Intown Atlanta neighborhoods…

>>  Find ALL the homes for sale in CANDLER PARK Atlanta

>>  Find ALL the homes for sale in LAKE CLAIRE

>>  Search for homes by Intown Atlanta NEIGHBORHOOD

More and more people are deciding to take the leap and purchase their first home this year, thanks to the $8000 first-time home buyer tax credit, the historically low interest rates and the lower home values.  If you are thinking of buying your first home, please email me at KerryLucasse@yahoo.com and I would be happy to send you a copy of the First-time Home Buyer’s Handbook.

KERRY LUCASSE ::  Keller Williams Realty Atlanta ::  404.432.1844

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For many potential first time home buyers, the 2008 and 2009 “First-time Homebuyer Tax Credit” has been a bit of a mystery. 

I’ve had many questions such as — When do you get your tax credit?  Do you have to pay it back?  What if you sell your house within 2 or 3 years?  What if I’m a first time home buyer but my husband isn’t? 

REALTOR.org created a “Cheat Sheet” that covers EVERYTHING and should answer 99% of your questions about the 2008 and 2009 First time home buyer tax credit.

>>> VIEW THE “CHEAT SHEET” 

FREQUENTLY ASKED QUESTIONS:

What is the difference between the 2008 tax credit and the 2009 tax credit (other than the amount)?

The primary difference is that the $7500 tax credit of 2008 needs to be paid back over the next 15 years (at $500 per year).  The new 2009 tax credit does not need to be paid back, as long as you stay in your home for at least three years.

When would I receive the $8,000?

There are several variables.  Assuming that you qualify for the full $8000 tax credit, you will need to file your 2009 income taxes in early 2010 and if you don’t owe any additional income tax, you should receive your check for $8,000 from the federal government within 1 to 6 weeks (it just depends on when you file and how your tax preparer submits your information.

A few other possible scenarios:

• If you owe $2,000 on your tax return, you will receive a refund of $6,000  ($8000 – $2000 = $6000)
• If you are entitled to a refund on your income taxes (let’s say $1,500), then you would receive an refund of $9,500 ($1500 + $8000 = $9500)

When is the last day I can buy a home and still get the $8,000 Tax Credit?

You must purchase BEFORE December 1, 2009.  That means that you should make an offer on a home in mid-October, as it usually takes 30 to 45 days to close on a home or condo.

I owned a home a few years ago — can I still qualify for the First-time Homebuyer Tax Credit?

Yes, if you have NOT owned a principal residence in the three (3) years prior to purchasing your new home.

My husband is not a first-time home buyer, but I am — can we still qualify for the tax credit?

You would only qualify if your husband (or spouse) has NOT owned a principal residence in the three (3) years prior to purchasing the new home.

Are there any income limitations?

Yes.  The full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). If you are an individual who makes $85,000 (for example), you will still qualify, just not for the full amount.  The tax credit phases out to those who make more than $95,000 (individuals) and $170,000 (on a joint return).

How long do I have to live in my home or condo?

If you sell your home before the 3-year limit, you will be required to pay back the $8000.

What if I want to buy a $30,000 foreclosure home?

The amount of the tax credit is the lesser of 10 percent of cost of home or $8,000.  So if you purchased a $30,000 home, you would get a $3,000 tax credit.  In order to get the full $8,000 you would need to purchase a home that is at least $80,000.

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I hope this information was helpful to you!  If you have any questions about the tax credit or need assistance with the purchase of your first home, please call anytime at (404) 432.1844.  I truly enjoy working with first-time home buyers and would be honored to help.

KERRY LUCASSE  ::   ATLANTA & DECATUR REAL ESTATE CONSULTANT  ::   KELLER WILLIAMS REALTY