10% off already reduced prices…Not quite as good as 2 homes for 1..but close.

If you haven’t owned a home in the last 3 years, there’s another great reason to buy a home now.  As if great home prices and a great selection of homes for sale weren’t enough reason.

It’s called the American Recovery and Reinvestment Act and it’s giving U.S. Citizens another incentive to get off that fence.  What it amounts to is 10% off the purchase price of the home you buy.  Just like a Red Tag Sale that lets you take an additional 10% off already reduced merchandise.  Gotta love it.

So how does it work?

  • First You have not owned a home in the last 3 years, right?  Ok…continue on.
  • You are a U.S. Citizen.  Check.
  • You’re single or filing head of household and your modified gross income is less than $75,000. You can claim the full 10% credit.
  • You’re married filing jointly and your modified gross income is less than  $150,000.  You can claim the full 10% credit.
  • You earn between $75,000-$95,000 (or married filing jointly $150,000-$170,000) you are eligible to receive a partial tax credit.
  • You purchase a home between 1/1/2009 and 12/1/2009  and you receive a tax credit in the amount of 10% of the purchase price of a home (up to an $8000 tax credit).  You must close on the purchase of your home during this time.
  • A refundable credit means that you will receive that credit from the government on your taxes.  If you owe less than the amount of the tax credit, the government will write you a check for that amount.  If you are getting a refund on your taxes, your refund will be increased by the amount of the credit.
  • All homes qualify (single family home, condo, townhome, or new build) provided the home will be used as a primary residence.

Best of all.  This tax credit does not have to be repaid..which is different than the tax credit that was being offered last year.  So…what are you waiting for?

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  1. […] And if you’d like information about this year’s first time home buyer tax credit check out my post on the subject at 10% off first time home buyer tax credit. […]