An $8,000 tax credit to help first time buyers get into a home of their own;
the First Time Home Buyer Tax Credit offers a significant inducement to home purchase.
The National Association Of Homebuilders is obviously pleased with this stimulus and offers a great deal of information about it on their site:
- The tax credit is for first-time home buyers only and does not have to be repaid.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
This is significant. There is still 100% funding available in certain circumstances for qualified buyers. I am seeing people get house keys with only a few hundred dollars out of pocket to close, and they can gleefully anticipate an $8,000 check with their tax return next year.
And we still have affordable $80,000 single family homes in Wake County, NC. They are not the rule, but they certainly exist. Getting $8,000 back on an $80,000 home would be maximum “bang for the buck” for that first timer.
The $80,000 home pricepoint is elusive in Cary, Apex, and Morrisville, but in Raleigh there are condominiums, townhomes, some detached homes, and in outlying areas there is more inventory. Wendell, Knightdale, and Zebulon come to mind in Eastern Wake County. Most any home in that price range will need some repair and updating, but the affordable price point exists.
Buying a fixer-upper home for your first home? The tax credit will roll in next spring to help offset the money you had to use to repair and redecorate.
Buyers would be well-advised to consult their tax specialist if they have any question about their personal tax situation and qualification for the credit, but it seems to me that the first time buyer credit is designed for wide distribution to function as an economic stimulus.