First-time homebuyers in Texas may get a generous incentive to act under the Obama Administration’s new housing recovery proposal. This incentive, coupled with low mortgage rates, makes today an excellent time to purchase a new home as local rents in Spring, Tomball, Conroe, The Woodlands, and Houston may now exceed the monthly cost of buying.
The American Recovery and Reinvestment Act expanded several provisions in the First Time Homebuyer Tax Credit including:
· Increasing the maximum credit amount from $7,500 to $8,000
· Eliminating the prohibition on use of the credit when state or local bond funding is utilized for mortgage financing.
· Eliminating the repayment requirement for purchases after January 1, 2009. Previously, the credit had to be repaid over 15 years.
· For homes purchased in 2009, if the home is sold within three years, the entire amount of the credit is recaptured.
This is truly outstanding news for home buyers as it essentially provides them with up to $8,000 in free money to buy a home! There are income limitations to this credit. The full credit is available to individuals with an adjusted gross income of $75,000 or less; $150,000 or less on a joint return, and it is fully phased out at $95,000 and $170,000 respectively. For a free consultation on how this new legislation may affect your mortgage purchase plans, send us an e-mail at MikeL@hlstx.com
[...] condominium, 2-4 family unit, or a manufactured home. A VA loan may be combined with the First Time Homebuyer Tax Credit which provides a tax credit of up to $8,000 on the purchase of a home, providing added savings to [...]
That was a thought-provoking post if ever I have seen one. I can’t say that I completely agree with you about the tax credit for home purchase though, could you clarify your thoughts on that?