Travis Newton, a local Salem area mortgage broker, emailed me this nice little chart with the information about the Tax Credit. It was nice and simple, so I thought I would share it with you.
Feature : H.R. 3221 Housing and Economic Recovery Act of 2008
Amount of Credit: 10% of the cost of the home, max of $7500
Eligible Property: Any Single Family Residence that will be used as Primary Residence
Refundable: Yes, reduces income tax liability for the year of purchase. Claimed on tax return
for that year
Income Limit: Yes, full amount of credit available to individuals with no more than $75,000 ($150,000 Jointly)
First Time Home Buyer Only: To be eligible, borrower may not have owned home in previous 3 year period.
Recapture: Yes, Portion(6.67% of Credit) to be repaid each year or 15 years. If home sold before 15 years, then remainder of credit recaptured on sale of home.
Effective Date?: Purchase on or after April 9, 2008
Termination: Ends July 1, 2009
If you have questions about this, talking with your tax advisor would be a good choice. Also, consider reading How Much Home Can You Afford.
(c) Copyright, 2008. Melina Tomson, All Rights Reserved (ie…be nice and create your own content. Don’t steal mine…)