With President Obama signing the stimulus package yesterday, there is a brand new version of the tax credit for home buyers. Here are some highlights:
- #1 - you no longer have to pay back this tax credit if you buy your house between Jan 2009 to Dec 2009, and do not sell your home within 3 years
- The tax credit is only available if you have not owned a home for at least 3 years
- The amount of the credit is the lesser of $8,000 or 10% of the purchase price
- If you owe less than $8,000 in taxes, the difference gets refunded to you
- The full amount of the credit is available to singles who make $75,000 or less, or couples who make $150,000 or less…(tax credit phases out above those caps)
- This tax credit is only good until December 2009
So if you buy a house before Dec 2009 this year, you could have $8,000 in taxes eliminated. If you owe less than $8,000 you will get the difference refunded. So if you owe $4,000 in taxes, you will eliminate the $4,000 + get a refund for $4,000! You could put this money in the bank as cash reserves or use it to assist you in furnishing your new house or making improvements.
Additionally, the stimulus plan is raising the FHA and Fannie Mae and Freddi Mac loan limits back up to $729,000 in many parts of California. This means better interest rates and lower down payments for buyers in those higher price catagories.
Give me a call if you would like to discuss using a 3.5% down FHA Loan to purchase a home.
Warm Regards,
Rob Chomentowski
Sr. Loan Officer and FHA Specialist
858-922-7899 (direct)
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