KHC Loan Programs
•All Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
•The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
•To qualify, you must meet KHC’s regular income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.
•Some Kentucky Housing loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.
Conventional
•Insured by approved mortgage insurance company.
•Minimum credit score of 660 or better.
•Quick turnaround time, 3 percent down payment and no up-front mortgage insurance.
•Can use DAP for 3 percent down payment requirement.
FHA
•Insured by the Federal Housing Administration.
•Down payments as little as 3.5 percent.
•Can use DAP for 3.5 percent down payment requirement.
•Upfront and monthly mortgage insurance.
•Minimum credit score of 620.
VA
•Guaranteed by the Veterans Administration for qualified military veterans.
•No down payment if the property appraises for the sale price or greater.
•Credit underwriting is flexible.
•Minimum credit score of 620.
•No monthly mortgage insurance payments.
RHS
•Guaranteed by Rural Housing Services (RHS).
•Home must be located in a rural area as defined by RHS.
•No down payment if the property appraises for the sale price or greater.
•Minimum credit score of 620.
•No monthly mortgage insurance payments.
Mortgage Credit Certificates (MCC)
A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.
Secondary Market Programs
(for repeat buyers and refinancing homeowners)
•Conventional ONLY
•Insured by approved mortgage insurance company.
•Minimum credit score of 660 or better.
•Quick turnaround time.
•Manufactured home are not eligible.
•New and existing properties up to a maximum purchase price of $316,000.
Special First Mortgage Loan Programs
New Construction Program for Single-Parent, Disabled and Elderly Households offers loans for newly constructed houses at interest rates from 1 to 6 percent. These limited funds are available, usually in July, on a first-come, first-served basis.
Guidelines
•Interest rate determined by the families’ ability to repay the loan.
•For new homes with a purchase price of $115,000 or less.
•Eligible borrowers:
◦Single parents (at least one dependent under the age of 18 must live in the home.)
◦Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.).
◦Households where at least one of the home buyers is age 62 or older.
•Income guidelines:
◦$28,000 for a household of 1 or 2 people; or
◦$33,000 for a household of 3 or more people.
•Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance.
Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.
Call 502-905-3708 or email me at kentuckyloan@gmail.com
office located 107 South Hurstbourne Parkway Louisville Ky 40222
Friday, November 13, 2009
ELIGIBLE USES Down payment and closing costs related to a home purchase.
KENTUCKY HOUSING CORPORATION (KHC) HAS EXTENDED AND EXPANDED THE PROGRAM FOR NEW RESERVATIONS THROUGH JANUARY 31, 2010.
First Home
ADVANTAGE
From
WHAT IS IT? Second mortgage with P&I payments deferred until July 1, 2010.
ELIGIBLE USES Down payment and closing costs related to a home purchase.
BORROWER ELIGIBILITY Must obtain a KHC first mortgage through an approved KHC lender to include all first time home buyers and second time home buyers in a targeted county.
INCOME AND PURCHASE PRICE LIMITS Must meet KHC income and purchase price guidelines.
TERM AND RATE After the initial deferral period, the loan will fully amortize over ten years, starting July 1, 2010, at 6 percent interest.
UNDERWRITING GUIDELINES Borrowers must have a 620 minimum credit score. Follow agency and KHC guidelines when applying for a second mortgage loan as down payment assistance. Must include the second mortgage loan obligation in the calculation of the borrower’s total housing expense, even though the payment is deferred until July 1, 2010.
Call 502-905-3708 for Details or email kentuckyloan@gmail.com
First Home
ADVANTAGE
From
WHAT IS IT? Second mortgage with P&I payments deferred until July 1, 2010.
ELIGIBLE USES Down payment and closing costs related to a home purchase.
BORROWER ELIGIBILITY Must obtain a KHC first mortgage through an approved KHC lender to include all first time home buyers and second time home buyers in a targeted county.
INCOME AND PURCHASE PRICE LIMITS Must meet KHC income and purchase price guidelines.
TERM AND RATE After the initial deferral period, the loan will fully amortize over ten years, starting July 1, 2010, at 6 percent interest.
UNDERWRITING GUIDELINES Borrowers must have a 620 minimum credit score. Follow agency and KHC guidelines when applying for a second mortgage loan as down payment assistance. Must include the second mortgage loan obligation in the calculation of the borrower’s total housing expense, even though the payment is deferred until July 1, 2010.
Call 502-905-3708 for Details or email kentuckyloan@gmail.com
Monday, November 9, 2009
Obama Signs First-Time Homebuyer Tax Credit Extension
Obama Signs First-Time Homebuyer Tax Credit Extension
By JON PRIOR
November 6, 2009 3:44 PM CST
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President Barack Obama signed the “Worker, Homeownership and Business Assistance Act of 2009” into law on Friday, extending the first-time homebuyer tax credit as well as certain jobless benefits at a time when the US unemployment rate has officially reached 10.2%.
With the first-time homebuyer tax credit originally scheduled to expire on Dec. 1, 2009, HR 3548 now allows first-time buyers to claim 10% of the purchase price of their home, up to $8,000 for single or married taxpayers filing jointly, if they close on the purchase by midnight June 30, 2010. Taxpayers must purchase or be locked into a contract to close before midnight on April 30, 2010.
The credit has provided more than 1.4m to taxpayers as of September 2009, according to the Internal Revenue Service.
New provisions accompany the extension. The credit is allowed for those with incomes up to $125,000 or $225,000 for taxpayers filing jointly. The credit reduces for those with incomes between $125,000 and $145,000 - or $225,000 and $245,000 if filing jointly. Anyone with an income higher than $145,000, $245,000 if filing jointly, cannot not receive credit.
Taxpayers who have lived in their home for five consecutive years during the eight years before closing on a new home may qualify for a reduced credit - $6,500 joint filers and $3,250 for those who file jointly.
The bill passed the House of Representatives on September 22, 2009, with 331 votes for and 83 votes against. When the bill landed in the Senate, it passed with 98 votes for and 0 votes against
By JON PRIOR
November 6, 2009 3:44 PM CST
Advertisements
President Barack Obama signed the “Worker, Homeownership and Business Assistance Act of 2009” into law on Friday, extending the first-time homebuyer tax credit as well as certain jobless benefits at a time when the US unemployment rate has officially reached 10.2%.
With the first-time homebuyer tax credit originally scheduled to expire on Dec. 1, 2009, HR 3548 now allows first-time buyers to claim 10% of the purchase price of their home, up to $8,000 for single or married taxpayers filing jointly, if they close on the purchase by midnight June 30, 2010. Taxpayers must purchase or be locked into a contract to close before midnight on April 30, 2010.
The credit has provided more than 1.4m to taxpayers as of September 2009, according to the Internal Revenue Service.
New provisions accompany the extension. The credit is allowed for those with incomes up to $125,000 or $225,000 for taxpayers filing jointly. The credit reduces for those with incomes between $125,000 and $145,000 - or $225,000 and $245,000 if filing jointly. Anyone with an income higher than $145,000, $245,000 if filing jointly, cannot not receive credit.
Taxpayers who have lived in their home for five consecutive years during the eight years before closing on a new home may qualify for a reduced credit - $6,500 joint filers and $3,250 for those who file jointly.
The bill passed the House of Representatives on September 22, 2009, with 331 votes for and 83 votes against. When the bill landed in the Senate, it passed with 98 votes for and 0 votes against
Sunday, October 18, 2009
Louisville real estate for sale & rent - Free Louisville Classifieds at Kijiji - houses, apartments, condos, office space and more for sale & rent in Louisville
Few using state's home tax credit
Official hoped $5,000 rebate would spur new-house sales
By Chris Otts • cotts@courier-journal.com • October 17, 2009
As the sun sets on the $8,000 federal tax credit for first-time home buyers, some Louisvillians are taking advantage of a lesser-known deal: up to $5,000 off their Kentucky tax bill for buying a new house.
But it's unclear whether the state credit, which went into effect July 26 and cannot be combined with the federal credit, is actually spurring sales. The credit can be used only by buyers of new homes that hadn't been occupied previously.
So far, 70 Jefferson County home buyers have been approved for the credit, said Valeria Cummings, spokeswoman for the state Department of Revenue.
For comparison, 2,244 homes were sold in August and September by members of the Greater Louisville Association of Realtors, whose agents work mostly in Jefferson, Bullitt and Oldham counties. Statewide, 414 buyers have been approved, obligating the state for more than $2 million in tax rebates, Cummings said.
The credit runs out July 26, 2010, or once the state has approved $25 million in rebates, whichever comes first.
“It was hoped by offering the credit, more people would look at buying homes, which could only help improve the economy,” Cummings said.
Financial adviser Sean Miranda and his wife, Jackie, were among the first in the state to qualify for the deal in July after buying a $350,000 house off Urton Lane in Middletown. Sean Miranda said they needed a bigger house after being surprised with twins eight months ago.
But it was getting the house for $50,000 off the asking price — not the tax credit — that motivated them to close the deal, Miranda said.
“It (the credit) was certainly the icing on the cake,” he said. “But more important was the opportunity to buy a brand new home at a tremendous discount.”
Three other Louisville and Bullitt County buyers who took advantage of the credit also said they would have bought a new house anyway. Josh Grimes said he and his wife will probably use the money to buy an appliance or bedroom furnishings for their new house in Zoneton.
The credit is designed to help move a glut of new houses off the market, thus clearing the way for more home construction, which has a big economic impact, said Bob Weiss, executive vice president of the Home Builders Association of Kentucky.
(2 of 2)
The Mirandas' house in Middletown had been on the market for two years, said Greg Bauer, the builder. But Bauer said he hasn't built another house since because of weak demand for new homes — a reality the rebate hasn't changed.
Weiss, who helped draft the legislation, said it's too soon to tell whether the credit is spurring sales. “I think that's a story left untold,” he said.
Not only is the Kentucky credit smaller than the federal credit, it also is nonrefundable. So unlike the federal deal, the tax credit is limited to the amount of the buyer's state tax liability. The only way to get the full $5,000 is to owe that much in state taxes. If your tax bill is, for example, $2,000, that's the limit of the credit you can collect.
In Kentucky, those making nearly $90,000 per year face a $5,000 tax liability. Unlike the federal credit, the state offer isn't limited to first-time home buyers. Also, the federal credit starts to phase out for individuals making more than $75,000 or married couples making more than $150,000.
Joe Pusateri, president of Elite Homes, estimates about seven buyers of his houses, which start at about $250,000, have qualified for the state credit.
“At least it's nice that we have something that kind of fits our customer base,” he said.
Industry leaders hope the federal first-time credit will eventually spur sales of more expensive homes, too, once buyers are able to sell their starter houses.
Recently, members of the Louisville Realtors association have had three months of sales increases over the same period a year earlier. That follows two years of declining sales.
Louisville real estate agent Teresa Morgan said the industry has promoted the federal tax credit more heavily than the state credit. Many buyers who qualify are unaware of it, she said.
“I don't get people calling me and saying, ‘What can I do to take advantage of the $5,000?'” said Morgan, who also leads the sales and marketing council for the Home Builders Association of Louisville.
Weiss said the state home builders group is planning a big marketing push for the credit, especially once the federal rebate expires Dec. 1.
“Just like the $8,000 one, it might take a while to catch on,” he said.
It's also not as easy to claim the Kentucky credit, Morgan said. For example, the state requires a form be sent only by fax to the revenue cabinet within seven days of the closing.
“It's real particular with how you have to file for it — a little confusing,” said Julie Riley, who qualified for the deal after buying a $220,000 house in Mount Washington with her husband, Brian.
The Rileys didn't find out about the credit until they had decided to buy a house, Julie Riley said. But considering the couple paid almost $5,000 in state taxes last year, this year's credit will be “a nice bonus.”
Official hoped $5,000 rebate would spur new-house sales
By Chris Otts • cotts@courier-journal.com • October 17, 2009
As the sun sets on the $8,000 federal tax credit for first-time home buyers, some Louisvillians are taking advantage of a lesser-known deal: up to $5,000 off their Kentucky tax bill for buying a new house.
But it's unclear whether the state credit, which went into effect July 26 and cannot be combined with the federal credit, is actually spurring sales. The credit can be used only by buyers of new homes that hadn't been occupied previously.
So far, 70 Jefferson County home buyers have been approved for the credit, said Valeria Cummings, spokeswoman for the state Department of Revenue.
For comparison, 2,244 homes were sold in August and September by members of the Greater Louisville Association of Realtors, whose agents work mostly in Jefferson, Bullitt and Oldham counties. Statewide, 414 buyers have been approved, obligating the state for more than $2 million in tax rebates, Cummings said.
The credit runs out July 26, 2010, or once the state has approved $25 million in rebates, whichever comes first.
“It was hoped by offering the credit, more people would look at buying homes, which could only help improve the economy,” Cummings said.
Financial adviser Sean Miranda and his wife, Jackie, were among the first in the state to qualify for the deal in July after buying a $350,000 house off Urton Lane in Middletown. Sean Miranda said they needed a bigger house after being surprised with twins eight months ago.
But it was getting the house for $50,000 off the asking price — not the tax credit — that motivated them to close the deal, Miranda said.
“It (the credit) was certainly the icing on the cake,” he said. “But more important was the opportunity to buy a brand new home at a tremendous discount.”
Three other Louisville and Bullitt County buyers who took advantage of the credit also said they would have bought a new house anyway. Josh Grimes said he and his wife will probably use the money to buy an appliance or bedroom furnishings for their new house in Zoneton.
The credit is designed to help move a glut of new houses off the market, thus clearing the way for more home construction, which has a big economic impact, said Bob Weiss, executive vice president of the Home Builders Association of Kentucky.
(2 of 2)
The Mirandas' house in Middletown had been on the market for two years, said Greg Bauer, the builder. But Bauer said he hasn't built another house since because of weak demand for new homes — a reality the rebate hasn't changed.
Weiss, who helped draft the legislation, said it's too soon to tell whether the credit is spurring sales. “I think that's a story left untold,” he said.
Not only is the Kentucky credit smaller than the federal credit, it also is nonrefundable. So unlike the federal deal, the tax credit is limited to the amount of the buyer's state tax liability. The only way to get the full $5,000 is to owe that much in state taxes. If your tax bill is, for example, $2,000, that's the limit of the credit you can collect.
In Kentucky, those making nearly $90,000 per year face a $5,000 tax liability. Unlike the federal credit, the state offer isn't limited to first-time home buyers. Also, the federal credit starts to phase out for individuals making more than $75,000 or married couples making more than $150,000.
Joe Pusateri, president of Elite Homes, estimates about seven buyers of his houses, which start at about $250,000, have qualified for the state credit.
“At least it's nice that we have something that kind of fits our customer base,” he said.
Industry leaders hope the federal first-time credit will eventually spur sales of more expensive homes, too, once buyers are able to sell their starter houses.
Recently, members of the Louisville Realtors association have had three months of sales increases over the same period a year earlier. That follows two years of declining sales.
Louisville real estate agent Teresa Morgan said the industry has promoted the federal tax credit more heavily than the state credit. Many buyers who qualify are unaware of it, she said.
“I don't get people calling me and saying, ‘What can I do to take advantage of the $5,000?'” said Morgan, who also leads the sales and marketing council for the Home Builders Association of Louisville.
Weiss said the state home builders group is planning a big marketing push for the credit, especially once the federal rebate expires Dec. 1.
“Just like the $8,000 one, it might take a while to catch on,” he said.
It's also not as easy to claim the Kentucky credit, Morgan said. For example, the state requires a form be sent only by fax to the revenue cabinet within seven days of the closing.
“It's real particular with how you have to file for it — a little confusing,” said Julie Riley, who qualified for the deal after buying a $220,000 house in Mount Washington with her husband, Brian.
The Rileys didn't find out about the credit until they had decided to buy a house, Julie Riley said. But considering the couple paid almost $5,000 in state taxes last year, this year's credit will be “a nice bonus.”
Tuesday, October 13, 2009
Get Tax Credits for Home Projects
Get Tax Credits for Home Projects .
Text .By AMY HOAK
Looking to make home improvements to help keep energy costs down this winter? The federal government is offering some financial incentives in the form of tax credits.
The credits can be claimed on a homeowner's income taxes for 2009 or 2010, whatever year the improvements were purchased. With a credit, the amount comes off any taxes you owe. Also, the credit is nonrefundable, meaning it allows taxpayers to lower their tax liability to zero, but not below zero, according to the Internal Revenue Service.
It's a good time to be thinking about improvements, says Ronnie Kweller, spokeswoman for the Alliance to Save Energy.
Andy Rash
.Upgrade your insulation, windows, doors, roofing, heating and air-conditioning system or water heater, and you could qualify for a federal tax credit for 30% of the purchase price of the product -- up to a $1,500 maximum credit.
To qualify for the credit, you must place those purchases in service between Jan. 1, 2009 and Dec. 31, 2010.
"The $1,500 cap applies to the aggregate amount of credits claimed in both years combined," says Robin Christian, senior tax analyst at the tax and accounting business of Thomson Reuters. "Also, only improvements made to your principal residence qualify -- vacation homes are not considered."
Details on which products qualify can be found on the Environmental Protection Agency's Energy Star program Web site. Some stores also post information. For instance, at Home Depot's Web site, there's a link to a list of specific products that qualify. Click on "Tax Credit Eligibility."
No Cap on Bigger Items
For typically more-costly improvements -- including solar water heaters, solar panels, small wind-energy systems and geo-thermal heat pumps -- the credit is for 30% of the purchase price, with no cap, according to energystar.gov. Fuel cells also are covered, at 30% of the cost, up to $500 per 0.5 kilowatt of power capacity.
Credits for these improvements are available through 2016, but you must claim them for the tax year in which you made the purchase. And all but the fuel-cell equipment can be used for a vacation home as well.
One note: To qualify for the credits, all of the products must be used inside a home. That means equipment used to heat a pool or hot tub doesn't qualify, Ms. Christian says.
Also, the federal tax credits don't always cover the cost of installation. The installation costs for heating and cooling systems and some other higher-cost improvements qualify, according to the Energy Star site. But installation of windows, insulation, doors and roofs doesn't.
The tax-credit rules are different if you are building a new home. In this instance, you can qualify for the credit for some upgrades, including geo-thermal heat pumps, solar panels, solar water heaters, small wind-energy systems and fuel cells. But you won't get a tax credit for the purchase of windows, doors, insulation, roofs, heating and air-conditioning systems, and nonsolar water heaters, according to the Energy Star site.
Make sure any products you purchase come with a Manufacturer Certification Statement, a signed statement from the manufacturer that says the product qualifies for the tax credit. You will need that and any receipts when you claim the credit on your taxes.
Monica Rebella, a certified public accountant in Tustin, Calif., suggests making a copy of receipts since the print can wear off receipts over time.
Where to Start
When looking to make a home more energy efficient, consumers typically first turn to insulation and windows.
"If you need insulation, that is the most cost-effective upgrade you can make -- even without a tax credit," says Karen Schneider, Web-site manager for Energy Star. "If you have a 50-year-old home and never looked at the insulation, now is the time to do that."
Many insulation projects, such as upgrading or adding insulation in an attic, are easy for do-it-yourselfers, says Michael Chenard, director of environmental affairs for home-improvement store Lowe's. "Insulation is one of the easiest things to do that is covered by the tax-credit promotion," he says.
Replacing windows also can be done by amateurs, as long as the measurements are accurate, Mr. Chenard says.
The tax credit makes the cost of a more-efficient window competitive with a lower-grade window that doesn't qualify, says Art Donnelly, owner of Legacy Builders & Remodelers in Holbrook, N.Y. And because of the weak economy, companies' "backlogs aren't as long," he says. "So it's quicker to get things installed."
Write to Amy Hoak at amy.hoak@dowjones.com
Text .By AMY HOAK
Looking to make home improvements to help keep energy costs down this winter? The federal government is offering some financial incentives in the form of tax credits.
The credits can be claimed on a homeowner's income taxes for 2009 or 2010, whatever year the improvements were purchased. With a credit, the amount comes off any taxes you owe. Also, the credit is nonrefundable, meaning it allows taxpayers to lower their tax liability to zero, but not below zero, according to the Internal Revenue Service.
It's a good time to be thinking about improvements, says Ronnie Kweller, spokeswoman for the Alliance to Save Energy.
Andy Rash
.Upgrade your insulation, windows, doors, roofing, heating and air-conditioning system or water heater, and you could qualify for a federal tax credit for 30% of the purchase price of the product -- up to a $1,500 maximum credit.
To qualify for the credit, you must place those purchases in service between Jan. 1, 2009 and Dec. 31, 2010.
"The $1,500 cap applies to the aggregate amount of credits claimed in both years combined," says Robin Christian, senior tax analyst at the tax and accounting business of Thomson Reuters. "Also, only improvements made to your principal residence qualify -- vacation homes are not considered."
Details on which products qualify can be found on the Environmental Protection Agency's Energy Star program Web site. Some stores also post information. For instance, at Home Depot's Web site, there's a link to a list of specific products that qualify. Click on "Tax Credit Eligibility."
No Cap on Bigger Items
For typically more-costly improvements -- including solar water heaters, solar panels, small wind-energy systems and geo-thermal heat pumps -- the credit is for 30% of the purchase price, with no cap, according to energystar.gov. Fuel cells also are covered, at 30% of the cost, up to $500 per 0.5 kilowatt of power capacity.
Credits for these improvements are available through 2016, but you must claim them for the tax year in which you made the purchase. And all but the fuel-cell equipment can be used for a vacation home as well.
One note: To qualify for the credits, all of the products must be used inside a home. That means equipment used to heat a pool or hot tub doesn't qualify, Ms. Christian says.
Also, the federal tax credits don't always cover the cost of installation. The installation costs for heating and cooling systems and some other higher-cost improvements qualify, according to the Energy Star site. But installation of windows, insulation, doors and roofs doesn't.
The tax-credit rules are different if you are building a new home. In this instance, you can qualify for the credit for some upgrades, including geo-thermal heat pumps, solar panels, solar water heaters, small wind-energy systems and fuel cells. But you won't get a tax credit for the purchase of windows, doors, insulation, roofs, heating and air-conditioning systems, and nonsolar water heaters, according to the Energy Star site.
Make sure any products you purchase come with a Manufacturer Certification Statement, a signed statement from the manufacturer that says the product qualifies for the tax credit. You will need that and any receipts when you claim the credit on your taxes.
Monica Rebella, a certified public accountant in Tustin, Calif., suggests making a copy of receipts since the print can wear off receipts over time.
Where to Start
When looking to make a home more energy efficient, consumers typically first turn to insulation and windows.
"If you need insulation, that is the most cost-effective upgrade you can make -- even without a tax credit," says Karen Schneider, Web-site manager for Energy Star. "If you have a 50-year-old home and never looked at the insulation, now is the time to do that."
Many insulation projects, such as upgrading or adding insulation in an attic, are easy for do-it-yourselfers, says Michael Chenard, director of environmental affairs for home-improvement store Lowe's. "Insulation is one of the easiest things to do that is covered by the tax-credit promotion," he says.
Replacing windows also can be done by amateurs, as long as the measurements are accurate, Mr. Chenard says.
The tax credit makes the cost of a more-efficient window competitive with a lower-grade window that doesn't qualify, says Art Donnelly, owner of Legacy Builders & Remodelers in Holbrook, N.Y. And because of the weak economy, companies' "backlogs aren't as long," he says. "So it's quicker to get things installed."
Write to Amy Hoak at amy.hoak@dowjones.com
Monday, October 12, 2009
First-Time Homebuyer Tax Credit
First-Time Homebuyer Tax Credit
The 2009 Economic Stimulus Bill, signed into law on February 17th, includes a tax credit for first-time homebuyers. All qualifying homebuyers are entitled to take advantage of this one-time tax credit.
Up to $8,000 tax credit. The tax credit is equal to the lesser of $8,000 or 10% of the purchase price of the home for first-time homebuyers who purchase a home after January 1, 2009 and before December 1, 2009. This replaces a previous $7,500 tax credit that was scheduled to expire on July 1, 2009.
Income requirements. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 can qualify for the full tax credit.
First-time buyers. Individuals who have not owned a home in the past three years are considered first-time buyers.
Residency requirements. For homes purchased after January 1, 2009, this tax credit does not need to be repaid if the home is occupied as the buyer’s personal residence for the first three years from the date of purchase. Prior to this new legislation the former $7,500 tax credit was required to be recaptured over a period of 15 years or when the home was sold.
Tax returns. A provision permits taxpayers to claim the tax credit for homes purchased during 2009 on their 2008 tax return.
The 2009 Economic Stimulus Bill, signed into law on February 17th, includes a tax credit for first-time homebuyers. All qualifying homebuyers are entitled to take advantage of this one-time tax credit.
Up to $8,000 tax credit. The tax credit is equal to the lesser of $8,000 or 10% of the purchase price of the home for first-time homebuyers who purchase a home after January 1, 2009 and before December 1, 2009. This replaces a previous $7,500 tax credit that was scheduled to expire on July 1, 2009.
Income requirements. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 can qualify for the full tax credit.
First-time buyers. Individuals who have not owned a home in the past three years are considered first-time buyers.
Residency requirements. For homes purchased after January 1, 2009, this tax credit does not need to be repaid if the home is occupied as the buyer’s personal residence for the first three years from the date of purchase. Prior to this new legislation the former $7,500 tax credit was required to be recaptured over a period of 15 years or when the home was sold.
Tax returns. A provision permits taxpayers to claim the tax credit for homes purchased during 2009 on their 2008 tax return.
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