Green Real Estate in Idaho

If you’re a first time home buyer that has been sitting on the sidelines waiting for interest rates to improve (come on, they are at 5.5% which is FANTASTIC), or a better selection (Spring/Summer usually represent the largest inventory levels) your time to take advantage of the $8000 tax credit is fast expiring. In it’s current format you must be closed (funded and recorded) on your purchase before December 1, 2009. As of this writing that leaves you with exactly 81 days to get across the finish line.

While 80+ days sounds like a long time, keep in mind if you’re not in the process at all yet you need to sit down with a lender and get pre-approved. You need to find a good agent that will guide you through the process, representing your best interests, find the perfect house and then navigate the escrow process. A typical escrow (in our market) is about 30 days. This absolutely does NOT include short sales. If you don’t have a short sale in contract at this point and the tax credit is important to you, you’ve probably already missed that boat. Many banks (not all) have expedited things considerably over last year, but it can still be 60+ days for an approval and THEN you open escrow.

While the $8000 tax credit certainly isn’t a deal breaker… I find that most people think the idea of getting $8000 vs not is pretty cut and dry. If buying your first home is on your list of things to do, now is the time to get into the game. Interest rates are still fantastic, prices are still down, and there are still some fantastic gems to be found. Granted, they are moving quickly, especially in the sub $200,000 price range. If you’re ready to make the dream of home ownership a reality, I’m ready to get to work for you to make that happen. Call or email me today!

Ben
208-991-HOME (4663)
ben[at]IdahoRealEstate.com

As of last Friday there has been an exciting improvement to the $8,000 ($8,000 or 10% of sales price, whichever is less) tax credit available to first time home buyers. Now, buyers using FHA approved lenders will be able to take an advance on their $8,000 credit and put it towards their down payments and or closing costs.

While the stimulus provides this credit to first time buyers (or those that have not owned a home for the past 3 years) the $8,000 previously could only be collected after the close of escrow by filing an amended 2008 return or waiting to claim the credit in 2010 on the buyers 2009 tax return.

I expect this to make a great thing even better as many first time home buyers find it difficult to come up with thousands of dollars in closing costs along with a down payment. For additional information regarding this new program consult your preferred lender. You can read the full article about this new program here.

I’ve made several posts regarding the $8000.00 (eight thousand dollar) tax credit that is available to First Time Home Buyers, but the information came over several weeks and looking back it’s a little disjointed. After recent requests for a recap, I’m pulling it all together for a full review. It’s great information and while it may not pertain to every buyer, most people know someone who is considering their first home and I guarantee this will prove helpful.

First things first, you don’t have to be a first time home buyer to claim this credit, well sort of. If you are a previous home owner, but have not owned a home for 3 years, you may qualify for this credit. I would recommend that you consult your tax preparer if you may be borderline on this issue. An $8000 credit is great, but not worth getting into hot water with the IRS!

As of February when this FTHB tax credit was revised to $8000, it was also improved to be a true credit. One that does not have to be repaid. The only catch is that you must own this property and use it as your primary residence for at least 3 years. (Previously, the credit was $7500, and required annual $500 payments for 15 years, making it a $7500 loan for 15 years at 0%. Don’t worry too much about this, it’s over and done with now.)

The tax credit is equal to 10% of the purchase price, up to a maximum of $8000. If you’re purchasing a home that is $81,000 or more, you will get the full $8000 credit.

The window for taking advantage of this credit is very FINITE. Homes purchased between January 1, 2009 and December 1, 2009 qualify. The transaction must be closed within this window. Obviously there is a fair amount of time left in which first time buyers can get on board, but I highly recommend not getting down to the wire. It would be a shame to miss out on $8000 because you missed your closing by a few days.

Income limitations, of course, when aren’t there income limitations. Thankfully these are also quite generous. Single taxpayers with incomes up to $75,000 or married couples with incomes up to $150,000 qualify for the full credit. If you exceed this income limit you may qualify for a partial credit of less than $8000.

If you are a first time home buyer that purchased between April 9, 2008 and January 1, 2009 you may be eligible for the former tax credit mentioned above ($7500 credit/interest free loan). Information about this program is available here.

To review a pretty thorough rundown on the $8000 first time home buyer tax credit I think that this website, is pretty well put together. Of course, you’re always welcome to contact me via email, phone, sms text message, or messenger pigeon and I can help as well. Bottom line, if you have ever thought about owning a home, now is the time to make every effort to make that dream a reality. Prices are down, inventory is up, interest rates are down, and the government would like to hand you $8000 as a house warming gift.