Vero Coastal Homes LLC
   Vero Beach Buyer's Agent

Tax Credit Update June 2009
Vero Beach Real Estate

When it comes to the $8,000 tax credit for first-time homebuyers, it seems there’s a new program every week to help tap that money today.The credit can be claimed on 2008 or 2009 tax returns. Homebuyers who get a loan backed by the Federal Housing Administration can use the money to cover closing costs and other fees, and at least 10 states offer ways to use the tax credit faster.

To be eligible, a Vero Beach home buyer cannot have owned a home in the past three years. So if you’re ready to buy, here are some tips:

Income considerations: The tax credit, for home purchases made through end of November, comes with income thresholds, $75,000 for individuals and $150,000 for joint filers. After those limits, the credit begins to phase out.

Bridge loans: Ten states (and the list keeps growing) are offering so-called “bridge loans” for the federal tax credit, so homebuyers can take advantage of the $8,000 before the 2010 filing season. Qualified homebuyers can receive a loan with little to no interest and repay it with the tax credit refund next year.

Advance credit: Last month, the FHA said its borrowers can receive advances on the $8,000 first-time homebuyer tax credit from lenders, so they don’t have to wait to get the money next year from the Internal Revenue Service.Borrowers will still have to come up with the FHA’s required 3.5 percent downpayment, but the advance from the tax credit can be applied toward closing costs, fees or to increase the downpayment.

 
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