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