Contact Information
Rick Hernandez Frazier Realty
7706 Pin Tail Dr. NE
Cedar Rapids, Iowa, 52402
Office: 319-431-4503 Cell: 319-431-4503
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First Time Home Buyer Credit |
New $8,000* Tax Credit
For 2009, Congress has enacted an $8000 credit specifically to help first-time homebuyers. To qualify, you can earn no more than $75,000 as an individual or $150,000 as a married couple that files a joint tax return. If you do qualify, you will be able to deduct the full $8,000 from your federal tax liability. Or, if you owe less than $8,000, the government will subtract the amount you owe from $8,000 and send you a check for the difference.
Only first-time homebuyers who purchase their principal residence on or after January 1, 2009 and before December 1, 2009 are eligible. You will also be considered a first-time buyer if you have not had any ownership interest in such a home in the three years previous to the day of your 2009 purchase.`
For more information about the $8,000 tax credit, please fill out the short form below. You will be put in touch with a local Sales Associate who can also tell you about our informative homebuyer seminars and help you get started on your way to homeownership.
Build equity. Over time, homes have always gained in value, so you can expect to get your investment back and typically much more when you sell.
Tax deductions. Save on taxes based on the interest and real estate taxes you pay instead of letting a landlord get the benefit.
Lower payments? It depends on your rent, of course, but if you can afford just 5% down, your monthly payments may actually be less than your rent.
Stability. While most landlords raise rents every year, you can choose a fixed-rate mortgage where the payments stay the same.
Receive credit. Money you put down and pay into a mortgage to build equity can be made available to you in the form of a loan or a line of credit.
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More Details: 2009 First-Time Homebuyer Federal Income Tax Credit
Amount of Credit- The amount of the tax credit is the lesser of 10% of the cost of the home or $8,000.
Eligible Property- Any single-family home (including a condo or townhouse) may be an eligible property under the tax credit, provided it will be used as the homebuyer’s principal residence. |
| Refundable- The $8,000 tax credit is a clean refundable credit – unlike the one that was passed last summer, which required a repayment. If you qualify as a first-time buyer (i.e., haven’t been a homeowner in the past three years), then you can claim the $8,000 to reduce your tax burden. If the $8,000 is greater than the tax you owe, then you will get a refund check for the difference. |
| Income Limit- In order to be eligible for the full tax credit, the homebuyer must have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit. |
| First-Time Homebuyer- Only The tax credit is designed for first-time homebuyers, which means the homebuyer (and/or the homebuyer’s spouse), must not have owned a principal residence in the three years prior to purchase of the eligible property. |
| Repayment- There is no repayment of the tax credit by the homebuyer. |
| Recapture- If the eligible property is resold within three years of purchase, the entire amount of the tax credit is recaptured on the sale. |
| Effective Date- The First-Time Homebuyer Federal Income Tax Credit is effective for purchases on or after January 1, 2009, and before December 1, 2009. |
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