Can I use the $8,000 tax credit as my down payment?

As part of the American Recovery and Reinvestment Act of 2009, the federal government is offering a tax credit up to $8,000 for QUALIFIED first time home buyers. You better hurry, time is running out! In order to take advantage of the credit, you must close on your new home no later than 11/30/2009. Realistically, you need to have a ratified contract NO LATER than 10/1/2009 to make the deadline. While you can probably still close in time with a contract by 10/15 you do not want to risk it. This is $8,000 that we are talking about, no need to take chances.

Can you use it as your down payment? NO. You can receive gift funds for all or your down payment though. A good realtor can often have all of your closing cost paid by the seller. It is possible to get into a home and after the credit is received, the net result will be that you get cash back.

Here is some important information about the tax credit:

• First-time home buyers only. the IRS defines a first-time home buyer as someone who has not owned a primary residence during the three-year period prior to the purchase
• No repayment is required
• The credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.In the Maryland, Virginia and DC home market, most all homes will qualify for the max
• Purchase must settle no later than 11/30/2009
• Income limits: up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Mortgage rates are creeping back below 5%, Now is the time! Call or email Josh Burley today!