$8000 First-Time Homebuyer Tax Credit

The new Stimulus Plan provides a great incentive for first-time homebuyers in Colorado $8000. According to the National Association of Realtors, the tax credit is expected to bring 300,000 new homebuyers into the market. Whether or not youre a first-time homebuyer, this influx of new buyers into the market is great news. With each new buyer, the demand for homes increases and the supply of homes shrinks. If enough new buyers are encouraged to purchase homes, they will have a significant impact on stability in the housing market and we may see home prices increase.

This tax credit, coupled with low home prices and historically-low interest rates, creates an ideal time to purchase a new home.

Heres how the tax credit works:

• The Tax Credit is calculated as the lesser of $8,000 or 10% of the purchase price of the new home and can be applied to your 2009 taxes. If you pay less than $8,000 in taxes, the government will cut you a check for the difference.

• The Tax Credit is available to first-time homebuyers only. A first-time homebuyer is classified as one who has not owned a principal residence in the last three years.

• The Tax Credit does not have to be repaid as long as the homeowners maintain the property as their principal residence for a minimum of three years.

• The Tax Credit is available to individuals earning $75,000 or less and couples earning $150,000 or less.

• The Tax Credit is eligible on any single-family home (including condos, co-ops and town homes) purchased between January 1, 2009 and December 1, 2009.

This guest entry was provided by licensed mortgage professional Ben Edgson. Ben owns and operates By the Brooke Mortgage, a division of Universal Lending. Feel free to contact him for questions regarding this tax credit or any other mortgage related need.

Ben Edgson 720.280.0441

ben@bythebrookemortgage.com

www.bythebrookemortgage.com