| If you are looking to buy your first home, this could | | | | of home (e.g. townhouse, condominium, mobile home, |
| very well be the best time to do it. If you've been | | | | houseboat, etc) also does not matter as long as it is |
| keeping up with the news, it is likely that you are | | | | your primary residence. Secondly, you must fall within |
| familiar with President Obama's economic stimulus | | | | certain income limits. For homes purchased after |
| package aimed at boosting ailing housing market. The | | | | November 6th, 2009 single tax payers must not earn |
| first time home buyer stimulus is an important part of | | | | more than $125,000 per annum and couples filing jointly |
| this stimulus package as it awards home buyers a tax | | | | must not earn more than $225,000. Until recently, |
| credit of 10% of the purchase price of their home (with | | | | these income limits were significantly lower and |
| a maximum of $8000). This is essentially money in | | | | unfortunately the changes are not retroactive. If you |
| your pocket because you do not have to pay this | | | | purchased a home between January 1st, 2009 and |
| back unless you sell your home within the first three | | | | November 6th 2009, then you must not have made |
| years. The great news is that the deadline has been | | | | more than $75,000 per annum if filing as a single tax |
| extended until April 30th, 2010 from the previous | | | | payer and not more than $150,000 if filing jointly with |
| deadline of December 1st, 2009. You actually have | | | | your spouse in order to claim the credit. |
| until June 30th, 2010 to close but must be in a binding | | | | Having discussed the two key requirements above, I |
| agreement by April 30th, 2010. This gives you a few | | | | must also mention that there are other factors that |
| more months to shop around, get in touch with | | | | may preclude you from qualifying for the tax credit or |
| mortgage brokers, and apply for a loan with terms that | | | | require you to repay it. For example, if you buy new |
| work for you. | | | | home from a close family member such as a parent, |
| There are two key requirements that you must meet | | | | grandparent, child, or spouse then you do not qualify. |
| in order to qualify for the tax credit. The first | | | | Similarly, an RV or recreational vehicle does not qualify |
| requirement is that both you and your spouse (if | | | | for the tax credit because it is considered "personal |
| applicable) must meet the definition of a first time | | | | property" that is not affixed to a piece of land. The |
| home buyer as per the current legislation. You are | | | | law may also change from time to time so you really |
| considered a first time home buyer if you have not | | | | have to stay on top of the latest developments. The |
| purchased a home as your primary residence in the | | | | best advice I can give you is to plan ahead, do all your |
| three years prior to your current purchase. Vacation | | | | research and due diligence, and familiarize yourself with |
| homes and rental properties do not count as primary | | | | the legal caveats in a way that will make this program |
| residences; therefore, if you purchased one of those, | | | | work for you. |
| you may still qualify for the credit. The specific type | | | | |