Vacation Home « first time home buyer

November 17, 2010

Obama’s First Time Home Buyer Stimulus

Filed under: Real Estate — Tags: Ample Selection, Aspiring Homeowner, Bargain Basement Prices, Couples, Extenuating Circumstances, First Time Home, First Time Home Buyer, Housing Market, Income Criteria, National Economy, Obama, Salary Cap, Stimulus, Tax Credit, Vacation Home — admin @ 2:28 pm

Suzan Smith asked:

Obama’s First Time Home Buyer Stimulus is a government program instituted to boost the housing market and help people who have not owned a house in the last three years. The assistance is in the form of a tax credit that is 10% of the purchase price. The maximum amount is $8,000.

The great thing about this program is that this tax credit is refundable. This means that you don’t have to owe that much in taxes to take advantage of it; it can come to you as a refund on your taxes.

This program comes at a time when the housing market is certainly a buyers market. Home prices have dropped to a very low level, and houses are not selling. Foreclosures are at an all-time high, and homes are available at bargain basement prices. If you can qualify for this program, you can receive a good tax credit and have an ample selection available of homes that are in your price range. These homes will likely increase quickly to their former value or above when the national economy stabilizes.

What are the income criteria for this program? A single person cannot make more than $75,000. The salary cap for couples under the program is $150,000 in income. If you make more than this amount, you may be able to qualify for partial credit. The home cannot be a vacation home or a rental property. This is for a primary residence that you will live in. If you sell the property before three years is up, you may have to pay it back. This recapture may be forgiven if there are extenuating circumstances.

Obama’s First Time Home Buyer Stimulus hopes to benefit both the housing market and those who do not yet own a home. For the economy and for the aspiring homeowner, this could not come at a better time!

Joe

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August 9, 2009

vacation home count as first time home buyer?

Filed under: Renting & Real Estate — Tags: Buyer Credit, First Time Home, First Time Home Buyer, Time Home Buyer, Vacation Home — admin @ 3:47 pm

Clark L asked:

I am planning to buy a vacation home in out state. Now will I be consider as first time home buyer if I never own a house in my state?
Will I qualify for first time home buyer credit even though I am buying out state home?

Edward

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April 25, 2009

Qualify for the First-Time Home Buyer Stimulus

Filed under: Real Estate — Tags: Adjusted Gross Income, Bear In Mind, Couples, Filers, Financial Adviser, First Time Home Buyer, First Time Home Buyers, Home Purchases, Investment Property, January 1, Principal Residence, Property Ownership, Tax Credit, Time Home Buyer, Vacation Home — admin @ 1:44 am

Roby Pagong asked:

First time home buyers can now enjoy tax credit. The government is currently offering this. The home buyer can enjoy as much as $8,000 tax credit. However, not everyone is qualified. If you have purchased a property this year, verify if you qualify for the said program. If you want to find out if you qualify, keep on reading.

The initial thing you have to keep in mind about this stimulus is that it is established for the first time home buyers. This is for those who have purchased their principal residence from January 1, 2009 up to December 1, 2009.

As stated earlier, this are for the first time home buyers who have purchased a principal residence during the period indicated. This means that home purchases made in 2008 is not covered by the program. The date of the purchase is the date of the date of the closing, which is the actual transfer of the property ownership. If you acquired the property in a different manner, consult a financial adviser to verify on how you can benefit from this arrangement.

You also have to be a first time home buyer in order to qualify. However, who is the first time home buyer? You are considered as one if you have not purchased a principal property in the last three years. You cannot be qualified as one if you have just purchased a principal property a year or two ago. You can still qualify though if the purchase you made concerns a vacation home or an investment property.

You should also take note of the income limit. The program has set limits as to who can qualify for the said program. For singles, the adjusted gross income should not be more than $75,000. Couples on the other hand, who are joint filers, should not exceed $150,000 on their adjusted gross income.

The tax credit is usually 10% of the value of the purchased property or the $8,000, whichever value is lower. Bear in mind that the tax credit is refundable. This means that you can claim it even if your tax liability is not that much. You should also remember that the said credit can be collected by the government back. This happens if you lose ownership of the property before reaching the third year mark. This means that you should have ownership of the property for at least three years. There are exempted cases though, such as health concerns and divorce.

Do not worry if you have filed your tax return early this year because you can amend it by filling up the 1040x form. It is best to talk to a tax adviser to ensure that all necessary steps are taken to amend your tax return.

As an added bonus, the HUD has authorized buyers with a mortgage insured by the FHA to avail of a short term loan amounting to as much as $8,000. This way, they can make use of the tax credit even if they have not filed their tax return yet.

Now is the best time to purchase a home. The price of the properties and the interest rates are low. Additionally, there are programs like the tax credit offered by the government.

Robin