This is a great time to be in the market for a new home, especially if you are a first time homebuyer. Not only are real estate prices low, but the US federal government is offering up to $8,000 as a tax credit to first time buyers who purchase a home between January 1 and November30, 2009. And, unlike the previous tax credit incentive of up to $7,500, this money does not have to be paid back.
Not every home buyer will qualify, and even those who do qualify may not get the full amount. The actual amount offered is 10% of the sale price of the home, up to $8,000. Single home buyers with a yearly income over $75,000 ($150,000 for couples) will not qualify for the full amount. Applicants for this credit must be a US citizen or a legal alien. Luckily for most first time home buyers, these qualifications should not be a problem.
There are a couple of catches that potential buyers should be aware of. First, if this tax credit is obtained after a purchase this year, the home owner has to stay in that home, as their primary residence, for at least three years. If you move before then, the money you received from the tax credit will have to be paid back. Second, the home sale has to be closed between the first of January and the end of November. If you don't close the sale on your new home until December 1st, even if it was scheduled to be closed earlier, you miss out on the tax credit.
The first time home buyer tax credit has already had an affect on home sales. Although the number of unsold homes is still higher than normal, the number of completed existing home sales has begun to rise. While still no where near where the number used to be, it has at least improved over the past few months, and it is estimated that the number of sales will continue to rise through the year.
So, what does this mean for you? Well, if you are considering buying a home this year, don't wait. There are only five months left of this special incentive, and buying a home doesn't happen overnight. This is a great time to buy, and the number of foreclosures has been increasing, giving you a great selection of homes to choose from.
Most people reach a point in their 20s or 30s when they say, “I want to own a home!” Owning a home has many advantages, especially for those that can handle their money well and understand the tax benefits of homeownership. As much as you want to be in one of the Queen Creek new homes, the government does, too! Owning a home increases your net worth, removes you from the renter’s cycle, and gives you a whole new way to approach life and money.
Don’t Jump in Without a Life-Jacket
Before you take on the exciting life of owning your first home, make sure you have enough money saved up. Many new homeowners fail to consider everything it takes to get a home in working order. However, there are many programs to help first time homebuyers including down payment assistance through FHA loans and many other options. Also, ensure that your lender is willing to work with you on improving your credit score so you can lower your monthly payments.
Understand Every Tax Benefit
If you have substantial savings and are ready to scour through the Mesa Homes for sale, make sure you understand the tax benefits, too! You can deduct: all of the mortgage interest up to $1 million, property taxes or real estate taxes, and interest on loans for capital improvements. If you buy a home between now and July 1, 2009, you will also receive a $7,500 tax credit. Make sure you do your research regarding these deductions and credits. There are many tax benefits to owning one of the beautiful Queen Creek new homes; you just have to know what they are!
If you would like more information about the Mesa homes for sale or new homeownership, visit www.azhomeinfosource.com!
Subscribe to RSS feed
