As mentioned in earlier posts, the $8,000 federal tax credit was extended to April 2010. This can enable you to get $8,000 back from the IRS for buying a home and $6,500 if you are a move up buyer. Here are some important additional facts about the tax credit:
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2 . If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5 . The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7 . The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.
This type of give away from the IRS is unfrequented and hasn’t been seen for a long time if ever, and may never be seen again in your lifetime. It’s amazing to get handed $8,000 for buying a home.
Some highlights of VA loans today:
- VA loans go up to 100% financing
- Sellers can pay all your closing costs on a purchase
- Maximum VA loans can get all the up to above $700,000 in many areas of the nation where jumbo VA loans are possible
- VA loan streamline refinance are easy to drop your interest rate to today’s low rates
- You don’t need great credit to apply for a VA loan, so if you think you have bad credit you still may be able to get a VA loan
- VA loan interest rates at record lows and being held down by the government to stimulate the economy, this won’t continue forever
- California VA Loans 100% to $737,000+ in many counties
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a conventional to VA refinance loan or VA purchase loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
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