What is the Housing and Economic Recovery Act of 2008?

For first time homebuyers, the Housing and Economic Recovery Act of 2008 provides a wonderful opportunity. The Act provides a tax credit to new homebuyers. Combined with today’s low interest rates and low house prices, it creates a great way for new buyers to become new homeowners.

Let’s look at an overview:

 In order to be considered a first time homeowner, you will not have owned a home for at least three years.
 Single taxpayers can earn no more than $75,000 a year. Married taxpayers are limited to $150,000 combined earnings.
 If married, both spouses have to be first time homeowners.
 The home cannot be purchased from a close relative such as a spouse or parent. You can purchase from siblings, cousins, etc.
 If you are single, but purchasing with a partner, and both are first time homebuyers, the tax credit will be split.

For homes that are purchased between January 1, 2009 and December 31, 2009, the tax credit is 10% of the purchase price of the home, but the credit cannot exceed $8000. If you live in the home as your primary residence for three or more years, you will not be required to repay the tax credit.

This is a great opportunity for someone who has good credit and is ready to purchase a home for the first time, or own a home for the first time in over three years. For those ready to make a start in life, or a fresh start, homeownership could be an important first step. And receiving a tax credit of up to $8000 is a great incentive to start looking.

Before you make the decision to buy, be sure to consult with a trusted real estate agent and possibly even a lawyer to be certain you have a complete understanding of how the Housing and Economic Recovery Act of 2008 works, and what your rights and responsibilities are.

Some of the benefits of buying a home will be realize immediately, such as the tax credit and the pride of owning your own home. You’ll also realize another benefit over the long term – you’ll see that your home is a wise investment as values begin to rise again.

If you’re ready to take the plunge, now is the perfect time to become a first time homebuyer, thanks to a hefty tax credit and great home prices.

Look me up @ www.Shawnstagg.com for more info.