|
2009 First-Time Homebuyer Tax Credit
As part of the American Recovery and Reinvestment Act of 2009, first time homebuyers can receive a tax credit of up to $8,000 when they file their 2009 income tax return. The tax credit is equal to ten percent of the homes purchase price up to a maximum of $8,000. For the year of 2008, there was also a tax credit for first time home buyers (up to $7,500); however the 2009 tax credit has changed significantly.
Basically if you purchase and close escrow on a home in 2009, and file your 2009 income tax return appropriately (complete IRS Form 5405 to determine your tax credit amount), you will receive a tax credit of up to $8,000. This is not an interest free loan, as was the case for the 2008 tax credit. The 2009 tax credit does not have to be repaid as long as you reside in the home as your primary residence for a minimum of three years. To qualify as a first time homebuyer you must not have owned a principle residence for a period of three years prior to the purchase of your new home. If you are married and either you or your spouse have owned a primary residence in the last three years, neither of you qualify.
Any type of home used as a principle residence qualifies for the credit to include single family homes, condominiums, townhomes, manufactured (mobile) homes, and even house boats.
There are income limitations that apply. For buyers with a modified adjusted gross income of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return the tax credit is reduced. It is reduced to zero for taxpayers with a modified adjusted gross income of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with modified adjusted gross incomes between these amounts.
For more complete information and details, please click here.
Veterans Can Refinance Sub Prime Home Loans Through the VA
As a result of the Veterans Benefit Improvement Act of 2008, veterans with conventional home loans now have options for refinancing to a Department of Veterans Affairs guaranteed home loan. Veterans in financial distress due to high rate sub-prime mortgages are potentially the greatest beneficiaries.
VA has never guaranteed sub-prime loans. However, as a result of the new law, VA can now help more veterans who currently have sub-prime loans.
Veterans who wish to refinance their sub-prime or conventional mortgage may now do so for up to 100 percent of the value of the property. These type loans were previously limited to 90 percent of the value. In addition, VA raised the maximum loan amount for these types of loans from $144,000 to $729,750 depending on where the property is located.
These actions will allow more veterans to refinance through VA, allowing for savings on interest costs and possibly avoiding foreclosure. For more information, go to www.homeloans.va.gov or contact Deborah Bruno of Wells Fargo Home Mortgage at 757-222-1428 or deborah.e.bruno@wellsfargo.com .
|
In This Issue
First-Time Homebuyer Tax Credit
&
Veterans: Refinance
Sub Prime Home Loans Through the VA
View all My Listings
Search the Entire MLS
OPEN HOUSE
Sat. - March 14th - 12-4pm
Chesapeake-Riverwalk
3BR, 2.5BA, 2446 SqFt
$339,000
Cul-de-Sac Lot
Nice Upgrades-Come See!
Chesapeake
Woodlake Forest
3BR, 2BA, 1092 SqFt
$220,000
Cul-De-Sac Lot
Huge Yard, Shows Well!
Chesapeake-Riverwalk
3BR, 2.5BA, 2144 SqFt
$314,900
Cul-de-Sac Lot
Shows Great!
|
