I have gotten a lot of questions pertaining to the revised homebuyer tax credit.  The following are key points that perspective home buyers should be aware of when considering a home purchase under the tax credit program

1. A tax credit of up to $8000 is available for 1^st time home buyers purchasing on or after 01/01/2009 and on or before 04/30/2010.  In cases where a binding sales contract is signed by 04/30/2010, a home purchase completed by 06/30/2010 will qualify.
2. A tax credit of up to $6500 is available for repeat homebuyers who have owned a home for 5 consecutive years out of the prior 8 years.  The repeat homebuyer tax credit applies to houses sold after 11/06/2009 and on or before 04/30/2010.  In cases where a binding sales contract is signed by 04/30/2010, a home purchase completed by 06/30/2010 will qualify.  Please note that this only applies to a primary residence.
3. The income limits for sales occurring on or after 01/01/2009 and on or before 11/06/2009 are $75,000 for individual taxpayers and $150,000 for married couples filing jointly.
4. Income limits of $125,000 for individuals and $225,000 for married couples filing jointly apply to all sales accruing after 11/06/2009
5. Home prices above $800,000 are not eligible for either the first time homebuyer tax credit or the repeat home buyer tax credit.
6. Expanded tax credit benefits apply to members of the military, the foreign service and the intelligence community.
7. Home purchases in 2010 may be claimed on an amended 2009 tax return.
8. Persons who are claimed as dependants by a tax payer or who are under age 18 do not qualify for a tax credit.
9. Home purchases from relatives of the taxpayer or the taxpayer’s spouse do not qualify for the tax credit.  The IRS defines relatives as ancestors (parent, grandparent, etc.) lineal descendants (child, grandchildren, etc.) and spouses.
10. Married couples are not eligible to claim the first-time home buyer tax credit if either souse has previously owned a home.  They may, however, qualify for the repeat home buyer tax credit.
11. Neither the first time home buyer tax credit nor the repeat home buyer tax credit have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within 3 years after the initial purchase.
12. Taxpayers must submit a copy of the HUD-1 settlement statement and IRS From 5405 to claim either the first time homebuyer tax credit or the repeat home buyer tax credit.

I hope these bullet points help you.  Let me know if you have any questions.

Best regards,

Bobby J. Yu

Sr. Mortgage Banker

Calvert Capital Corp.

(Residential and Commercial)

8584 Katy Fwy. Ste 360

Houston, TX.  77024

(P) 832-200-3535 Ext. 210

(P) 832-518-3010 (Direct Line)

(Cell) 713-922-0086

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