Many have asked, what are the details behind the tax credit and how late can I buy a house and still apply? Here are the details:

In order to qualify, a contract must be signed by April 30, 2010. Once underway, purchasers will have until June 30, 2010 to close.

How much is available?

  • - First-Time Home Buyers can qualify for up to $8,000. A First-Time Home Buyer is considered a purchaser and/or spouse that has not owned a residence in the past 3 years.
  • - Current home owners can qualify for up to $6,500 if they have used the home being sold as a principal residence for 5 consecutive years within the last 8.

Other points to know:

  • - The credit is technically 10% of the value of your home, or $8,000 -- whichever is less.
  • - The credit does NOT need to be repaid if you continue to use the home as your primary residence for at least 3 years.
  • - The credit is only awarded on homes purchased for $800,000 or less.
  • - Single buyers with incomes up to $125,000 and couples with incomes up to $225,000 may receive the maximum credit. These limits have changed from the previous Tax Credit.

How to redeem the credit:

  • - The credit should be redeemed via IRS form 5405 in your 2010 tax return.
  • - You may also amend your 2009 taxes using form 1040X to receive the tax credit immediately and put that money into your home.

If you have more questions or want to start taking advantage of this incentive, contact us today.

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