The outline below is for informational purposes only and not meant to replace professional advise. I recommend consulting a tax professional, whom can provide a full explanation and confirm your eligibility.
Details: 1) Maximum credit issued will be $8,000 or 10% of home's purchase price(whichever is less). 2) Must purchase home before April 30, 2010. 3) It is recovered when buyer files his/her next tax return. Reduces or eliminates tax liability. Unused amount will be refunded to tax filer. Ex: If you owe $1000 to the IRS before the credit, you will receive a $7000 refund after credit is applied. 4) If home is sold within three years of purchase, the entire credit amount will be recaptured upon sale. Otherwise it does not require repayment. 5) New FHA Rule allows first time home buyers the choice of using the $8000 tax credit toward the down payment if using FHA-backed financing with an FHA-approved lender. The lenders are allowed to use a bridge loan to help toward closing costs, buying down the interest rate or adding to the 3.5% down payment. The home buyer must still provide the minimum 3.5% down payment. Eligibility Requirements: 1) Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence. 2) For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. 3) The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.
Common Questions: 1) To claim tax credit: Complete IRS form 5405 to determine tax credit amount, and then claim this on line 69 on form 1040 2) If you purhased a home in early 2009 and already applied for the $7500 tax credit for on your tax 2008 retrurns, you may file an amended 2008 tax return with a 1040X form.
For Further Information: 1) Contact your loan officer, or contact Kay below. 2) Go to www.irs.gov.
If you have any questions, want me to preview and inspect any listings, or want to set up a showing appointment, please contact me. Thank you for your interest and I look forward to working with you. Charlie DiPaolo Broker in Charge Cell:(843) 813-4624 Office:(843) 559-2051 Fax: 1-866-517-2617 Email me @ cdipaolo@charlestonpropertysales.com
For all your financing questions:
Kay Rode Mortgage Loan Specialist First Reliance Bank 800 South Shelmore Blvd Mount Pleasant, SC 29464 (843) 375-3624 Direct (843) 789-1ASK ACCESSLive Customer Care Center (843) 375-3619 Fax (843) 991-0307 Mobile krode@firstreliance.com