The Web site www.FederalHousingTaxCredit.com explains in detail the provisions of the new tax credit. In a nutshell, it:
- Provides a tax credit equal to 10 percent of the sale price of the home, up to an $8,000 maximum. Is a true tax credit. It does not need to be repaid, unless the home owner sells the home within three years of the purchase.
- Can only be used with the purchase of a home that will be the buyer’s principal residence. It cannot be claimed for the purchase of a vacation home or property to be used as a rental.
- Available to first-time home buyers only. A first-time home buyer is defined as someone who has not owned a principal residence for three years or more.
- Applies to homes purchased by qualified buyers between Jan. 1 and Nov. 30, 2009. The purchase date is the date when closing occurs and the title transfers.
For more resources to help you understand the process of financing and buying a home, visit www.nahb.org/forconsumers today. Or, contact the Home Builders Association of Greater Springfield or visit SpringfieldHBA.com‘s “Helping Your Home” page. Or, visit www.nahb.org/forconsumers.