The just signed and sealed…a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy! A first-time home buyer is one who has never owned a home or a person who has not owned a home in the three years prior to the qualifying purchase.
The new
advantage for first-time home buyers who purchase homes from the start of the year until the end of November 2009 it that they may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit!
A tax credit is very different than a tax deduction – a tax credit is equivalent to money in your pocket, as opposed to a tax deduction which only reduces your taxable income. There are, however, some limitations: the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years. The credit can be applied to purchases made from 1/01/09-12/01/09.
The stage is set. This tax credit incentive along with the large inventory of homes currently at 2004 bargain prices combined the historically low interest rates (The30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week's 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent,) makes this a perfect time for first-time home buyers to get in to the real estate market and become home owners!
View the Scottsdale – Phoenix MLS for condos and townhomes
View the Scottsdale – Phoenix MLS for single family homes
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