2009 Federal Housing Tax Credit - Save Money On Home Purchase This Year

PR Log (Press Release) – Jun 15, 2009 – This leaves you with a mere eleven months to find a home you love and save money on the purchase price. The tax credit is equivalent to 10% of the price you’ll pay to purchase your home up to $8,000. For instance, if you purchase a home for $75,000, you will receive a tax credit of 10%, equaling $7,500. If you purchase a home for $80,000 or more, you will receive no more than $8,000 in tax credit, regardless of the exact price. This tax credit was initiated by the 2009 stimulus package under the American Recovery and Reinvestment Act, and is making it an ideal time for buyers to purchase a home.

Some websites are claiming that in order to apply for the 2009 federal housing tax credit, you need to be a first time homebuyer. That simply is not true. You needn’t be a first time homebuyer in order to take advantage of the tax credit that will only be around until December 1st of this year. You simply need to be purchasing a home for your personal and primary residence. You cannot purchase the home as a secondary property in the hopes that you’ll be able to make money from renters or resale. You must live in the home yourself. For real estate investors, any homes you purchase for secondary properties, whether you are using them to make a profit or not, will not be applicable for the tax credit. It is only available for one of the homes you purchase this year.

There are income limits to the 2009 federal housing tax credit. Single taxpayers are allowed to make no more than $75,000 per year in order to apply for the credit. Married taxpayers must make $150,000 or less when filing a joint tax return. If you’ve got a modified adjusted gross income (MAGI), the tax credit amount may be reduced for you. In many cases, despite the MAGI factor, those taxpayers will be able to receive partial tax credit opportunities with the purchase of a home. In order to determine the percentage and price cap of your tax credit, speak with a lender who specializes in mortgage loans and government lending programs, including the Federal Housing Administration (find loans at http://www.fhaloanaz.com ).

In order to apply for the 2009 federal housing tax credit, you needn’t purchase any specific type of home authorized by the government. In reality, any type of home you purchase this year will apply for the credit. This includes single-family residence, condominiums, homes you have built or are building, homes you’ve contracted to be built, and many, many more. Even houseboats, if purchased this year, can apply for the credit. So no matter where you live or what type of house you decide to buy for your primary residence, you can enjoy a 10% tax credit up to $8,000 off the purchase price of that home.