$8,000 Tax Credit For First Time Home Buyers
Are you considering buying your first home? Or perhaps you’ve owned a home before, but it’s been more than 3 years. If this is you, you may very well qualify for $8,000 of free money.
What??? That sounds way too good to be true.
Well, it’s part of the government’s new stimulus package to boost the economy by encouraging people to buy a home. This will also have the effect of reducing the number of foreclosed homes sitting out there on the market.
How does it work? Well, besides being a 1st Time Homebuyer (or meet the 3 year limit), you must also close on your new home by November 30, 2009. It can be any type of loan and any type of home. If you prefer a condo or townhome instead of a house – no problem. The $8,000 still applies.
How do I collect the money? It’s managed through your taxes. Next year (2010), when you get your tax return the $8,000 tax credit will be included. Let’s say for example you OWE $5,000 for taxes. You have your $8,000 credit coming your way. Now you will receive a check for the difference, $3,000. If you owe nothing, you’ll simply get your $8,000 check in the mail.
Still sound too good to be true? Well, it is! If you don’t believe me, turn on the Oprah Show where Susie Orman shared about this very same thing. It is a nice (and rare!) bonus to buyers. Remember, it expires at the end of November, so you only have a limited time to buy. And I recommend trying to close sooner than later. With everyone buying before the deadline, closers and title companies will be swamped towards the end, and a December 4 closing date will not qualify!
