mortgage financing and programs

Stimulus Package Contains Substantial Home Buyer Tax Credit

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On Feb 17, 2009 President Obama signed the much anticipated Economic Stimulus Package dubbed the American Recovery and Reinvestment Act into law. This Stimulus Package has a very substantial tax credit available for first time home buyers. Here the details on the credit:

  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000
  • Available to First Time Home Buyers. A First Time Buyer is defined as someone who has not owned a principal residence in the previous three years.
  • Any type of home that is a principal residence qualifies. This includes single-family detached homes, attached homes like townhouses and condominiums, and mobile homes.
  • Applies to purchases made between January 1, 2009 and before December 1, 2009.
  • The full tax credit is available for Single taxpayers with a modified adjustable gross income up to $75,000 and $150,000 for married taxpayers that file joint returns. A partial tax credit is available for taxpayers with greater earnings.

Now is a very advantageous time to buy a home. Home prices have steadily declined in value in most areas of the country since autumn of 2007. This has resulted in a slew of affordably priced homes available for sale. The $8000 tax credit included in the Economic Stimulus Package gives people another great reason to buy a home this year. Contact Chosad and we can get you pre-approved so you can begin shopping for a new home, or if you are already in need of financing we can help you with that. Give us a call at 604-916-2321.

Posted in: imortgageserve news, first time home buyers

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