It starts with a dream…

One-Time Tax Credit in 2009 for First-Time Home Buyers

April 21st, 2009 Posted in Local News, Real Estate

There are many reasons why a renter should seriously consider becoming a first-time home buyer in 2009.

  1. Home prices are the lowest they have been in many, many years.
  2. Interest rates are at an all-time low; around 5%.  Home mortgage interest rates peaked at 18.45% in October of 1982.
  3. First-time home buyers who purchase a home between January 1 and November 30, 2009 will receive a tax credit of up to 10% of the purchase price up to a maximum of $8,000 as a result of the Stimulus Bill.  This means, if you have paid income taxes this year of $8,000 or more, you will receive a refund of $8,000 from the IRS in 2010.  (Consult with your tax professional)
  4. Additionally, should you purchase a brand new home that has never been lived in, you may be eligible for an additional $10,000 tax credit.

    First-Time Home Buyers

    First-Time Home Buyers

As an example, let’s consider a mortgage amount of $300,000.  The principal, interest, taxes and insurance per month are going to be approximately $2,000.00.  Assuming you close escrow in June of 2009, the interest you pay on your mortgage for the next 6 months is going to amount to approximately $7,500.

That $7,500 will be a tax deduction on your 2009 income taxes, which reduces your tax liability.  Also, the 6 months of property taxes paid, approximately $1,875, will be another tax deduction.  Add to that the one-time tax credit of $8,000, which makes 2009 the optimal time to become a home owner.

It’s time for you and your family to realize The American Dream of home ownership and enjoy all of the tax benefits associated with it…

The FHA program only requires a 3.5% down payment, and there are still a couple of loan programs available that require smaller down payments for low-income families.

The first step for you is to be prequalified by a mortgage professional.  The next step is to find a Realtor(R) you feel comfortable with to help you identify the homes in your area that fit your budget.

Find your next home in San Luis Obispo North County at the click of a mouse at Sherry’s Website.  If I can be of any help to you in your search for a home or a recommendation of a mortgage professional, you can either email me or call me at (805) 235-0234.

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