and short sale properties. National Association of Realtor reported that first time home buyer made up 53% of the national home purchasers in March and pending home sales increased by 6.7% in April.
To qualify for this tax refund, you must be a first time home buyer. IRS defines a first time home buyer as a taxpayer who has not owned a primary residence for at least three years prior to the purchase. Now this could get a little tricky. If you are a married couple, you would not qualify if you or your spouse owned a primary residence in the past three years. Married taxpayers would qualify for this credit if neither spouse has owned a principal residence for past three years. However, unmarried joint purchasers may allocate the credit to the buyer that qualifies as first time home buyer. There is also income limitation for this tax credit. The income limit for single taxpayer is $75,000; married taxpayers filing joint returns have income limit of $150,000. However, you may be eligible for partial credit if your income is higher than the IRS limits and I suggest you consult with a tax professional.
To sweeten this economic incentive, US Department of Housing and Urban Development recently announced that first time home buyers have the option to use their $8000 credit toward down payment orclosing costs by financing their home purchase through FHA-approved lender. You still must come up with the FHA mandatory 3.5% down payment but now, lenders can buy the tax credits from the buyers and collect the money from IRS, hence use the tax credit to lower the borrower’s principal balance and reduce the monthly payments.
This $8000 credit is only available for purchases that are finalized from January 2009 to November 30th of 2009. This means that first time home buyers must find a home by beginning of November since it would take at least 21 days for conventional financing to close escrow. If you are getting an FHA loan, you must identify your home before November because the FHA process would take at least 40 days.
Finding a home is easy. Just go to our website www.900flat.com and search for all types of properties including foreclosures. We can direct you to a right lender for financing negotiate for the price and walk you through escrow process. We would also offer you cash rebate up to 50% of our commissions on regular sales and 30% on bank owned purchases.
For more information please contact us:
Platinum Capital Realty
Phone: 310-598-5939
Toll Free: 877-900-FLAT (3528)
www.900flat.com
info@900flat.com
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