Greetings!
 This month I am focusing on something you've probably heard about in the news - the $8,000 first time home buyer tax credit. Here, I will review the qualifications, look at the time-line for using it and tie it into the home-buying process.
While you may already own a home and don't necessarily qualify for the tax incentive, you may know someone who hasn't purchased their first home. Our hope is that you recognize the benefits of this program and encourage first time home-buyers to seize this incredible opportunity.
What is the Home-Buyer Tax Credit?
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o It is a program that provides up to $8,000 tax credit to first time home buyers for the purchase of a new home.
o The IRS defines "first time home buyer" as anyone who files taxes and has not owned a home in the last three years.
o The $8,000 is the maximum refundable credit. It is adjusted downward based on the buyer's adjusted gross income (AGI).
o Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. (Please consult with your accountant for more details).
How and when do you receive the money?
o Buyers can take the tax credit on their 2009 tax return.
o Otherwise, buyers can amend their 2008 tax return and receive the money more immediately.
What are the effective dates of the program?
o The tax refund is available to first time buyers for sales that close between January 2, 2009, and November 30,2009.
Why should a buyer act now?
o To receive the credit a buyer MUST CLOSE on their home by November 30, 2009.
o It can take weeks or even months to find the right home.
o A traditional home purchase (not including foreclosure or short sale) takes 45 days to close, on average.
o The process for purchasing a short sale or foreclosure can take much longer than a traditional home sale.
o The banks and closing offices will be incredibly busy the end of November.
o With these considerations in mind, closing in October or in early November will protect a buyer's ability to secure the $8,000 credit.
I truly believe this is an unprecedented time for anyone who wants to and can afford to buy their first home. The combination of the $8,000 credit, historically low interest rates and a market that has most likely bottomed is an unbelievable trifecta for a first-time home buying opportunity.
Please consider referring us to someone you know who is thinking about buying their first home and would like to take advantage of this historic time. We appreciate the referrals and will take good care of your friends and family.
As always, we are happy to talk more specifically about your real estate needs. Call or email anytime.
Best,
Kricket & Mike Opheim
KricketandMike.com Inc
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