Answers on the First Time Homebuyer Tax Credit
As if first time homebuyers needed another reason to buy a home besides historically low interest rates, depressed home values, and escalated inventories, the federal government has sweetened the deal. Currently under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. Buyers can claim the credit either on their taxes or in some cases apply it directly at closing.
Here’s how it works:
* The $8000 Tax Credit CAN be used toward additional down payment (above the 3.5% required by FHA), closing costs and prepaids in any situation.
* The $8000 Tax Credit CAN be applied by amending the 2008 tax returns for a 2009 purchase. The refund will have to be processed and then returned to the customer to be applied for down payment. See www.irs.gov/newsroom/article/0,,id=205416,00.html
* The $8000 Tax Credit CAN be applied to the required minimum investment of 3.5% down payment if the credit is delivered through a Government – FHA Approved Non-profit. Since HUD is not overseeing the process of repayment, no non-profits to date have agreed to advance the money as they are unsure how they will be able to guarantee their re-payment. A list of FHA non-profits has been attached for your review here.
NOTE: PLEASE be very cautious with the companies that are claiming to monetize the tax return as there are several companies offering this service at exorbitant rates. Make sure you talk with your lender before you become a potential victim of fraud.
With the opportunities available to today’s first time homebuyer, it is important that you have a real estate agent who’s on your side. You need an agent that will help you make the best investment for your future while meeting your short and long term needs and goals. Andy and Lesley Peters with The Peters Company at Keller Williams Realty are proud to represent buyers in the metro Atlanta including Downtown Atlanta, Midtown Atlanta, Brookwood, Buckhead, Brookhaven, Decatur, Sandy Springs, Chamblee, Dunwoody, Norcross, Smyrna, Kennesaw, Marietta, Roswell, Alpharetta, Cumming, Duluth, as well as other surrounding metro Atlanta areas. As homeowners and agents, we have lived and worked inside and outside the perimeter, and we appreciate the benefits of both locations. For more information about The Peters Company, visit our website at www.thepeterscompany.com. You’ll also find us on Kudzu.com under “The Peters Company” where we have received well over 40 5-star reviews and are ranked as Atlanta’s highest rated real estate team. Give us a call today at 770-634-2782. Whether buying or selling, it would be our pleasure to help you maximize your opportunity and take advantage of this real estate market!
