David Bruce

March 12th, 2009

Buy Your First Home, NOW!!!

What a great time to buy your first home! Richmond area home prices are low making it a buyer’s market, mortgage interest rates are low and the government is now giving an $8000 tax credit that you do not have to pay back. The new tax credit is a great benefit that should be taken advantage of! It’s free money!

First-time home buyers who purchase a home this year can take advantage of the stimulus bill’s $8,000 tax credit, the U.S. Department of the Treasury said in a news release on Wednesday.

Unlike the previous $7,500 credit available to this group of buyers, the credit outlined in the American Recovery and Reinvestment Act of 2009 does not have to be paid back if the home remains the buyer’s primary home for at least 3 years after the purchase date, according to the Internal Revenue Service’s Web site. First-time buyers, for the purpose of this credit, are those who have not owned a home in three years. So even if you owned a home 3+ years ago you still qualify!

Buyers have to purchase a home before Dec. 1, 2009 to be eligible, and the credit can be claimed on a home buyer’s 2009 tax return.

“This is found and free money which can really help people realize the American dream of home ownership”, says Skye Bruce, the #1 REMAX Agent in Central Virginia in 2006, 2007 and 2008. “Along with low current area home prices and fantastic mortgage rates, now is the time to buy for first time home buyers”, added Skye.

Buyers can claim 10% of the purchase price, up to $8,000, or $4,000 for married individuals filing separately, according to the IRS’ Web site. The credit starts to phase out for those whose adjusted gross income exceeds $75,000, or $150,000 for joint filers.

The IRS has posted a revised version of the form required to claim the credit, Form 5405, on IRS.gov. Visit IRS.gov’s first-time home buyer page.

“The expansion of the first-time home buyer tax break as part of the president’s recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers,” said Treasury Secretary Tim Geithner.

Last year, almost one out of two home buyers bought for the first time, according to the Treasury Department’s news release. The addition of new homeowners helps reduce inventory by filling vacant homes and allowing the sellers of existing homes to move on to another home.

The U.S. Department of Housing and Urban Development also recently announced that it will temporarily increase loan limits for Federal Housing Administration-backed mortgages, also in accordance with provisions in the stimulus. The new FHA limits now go up to $729,750 in high-cost areas. The new limit on FHA’s reverse mortgage product also has been raised to $625,500.
The higher limits are in effect until the end of the year.

For more information about buying your first home check out RichmondHomeShopper.com’s FIRST TIME HOME BUYER HEADQUARTERS. To get started looking for your first home contact Skye Bruce Properties, the Official REALTORS and Buyer’s Agents of RichmondHomeShopper.com or check out our RICHMOND HOME SEARCH features.

This entry was posted on Thursday, March 12th, 2009 at 8:42 am and is filed under Buying A Home. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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