Low Rates – Homebuyers Tax Credit
homebuyers tax credit
The Fed did what they set out to do – purchasing $1.25 Trillion in Mortgage Backed Securities, and succeeding in their plan to lower home loan rates and help stabilize the housing sector. And even though they stretched out the length of the program slightly – in order to soften the impact of the end of the program – the training wheels are now off, the safety net is gone, and home loan rates have already moved higher. In fact – as the Fed will now gradually become a seller of their massive holdings of Mortgage Backed Securities – rates are very likely to continue to move higher still.
$6,500 Existing Homebuyers Credit
$6,500 home buyer tax credit
Long time resident of the same main home credit by the IRS – supplements the popular $8,000 credit for first-time purchasers. Owners of existing homes – specifically taxpayers who have occupied the same property as a principal residence for any five consecutive years during the previous eight years – may not be able to claim a tax credit on a purchase of another house they intend to use as a principal residence.
The credit is for up to 10 percent of the price of the replacement home, capped at $6,500. The purchase contract must be dated anywhere from Nov. 7, 2009, to April 30, 2010, and the closing must occur no later than June 30, 2010. Members of the armed forces and federal diplomatic and intelligence personnel stationed overseas get an extra year to claim the credit.
$8,000 1st time buyer tax credit – no repayment
First-time buyers get $8,000 tax credit in stimulus bill
