Your Second First Time
Posted by mmetz on March 1st, 2010
featured, financial, housing, news
By now everybody has heard of the First Time Home Buyer tax credit, and to take advantage of the $8,000, you have to meet the April 30th deadline. What the government is now saying that your second time is almost as good as the first!
Now anyone who has owned a principal residence home for five consecutive years is eligible for a $6,500 tax credit!
The same rules apply to the Repeat Home Buyers tax credit that apply to the First Time Home Buyers, meaning you must have a household income no more than $75,000 for singles, and no more than $150,000 for married couples filing a joint return.
Just to be clear, the government is considers the following to be acceptable principal residences:
• Single-Family Detached Homes
• Townhouses
• Condominiums
• Manufactured/Mobile Homes
• Houseboats
The tax credit will only be 10% of the purchase price of the home, to a maximum of $6,500. If you meet the requirements to get the tax credit, it’s a great way to help you get your first home! You better hurry though because the April 30th deadline is quickly approaching.
Good luck house hunting and enjoy that $8,000 or $6,500 tax credit!
Source: Federal Housing Tax Credit
Photo by: Spaunsglo // CC 2.0
3 Responses to “Your Second First Time”
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Thanks for this information. I won’t be ready to purchase my first house by this date, but this extension makes me wonder if they will extend it once again. Then maybe I could use it to my benefit!
Are there any requirements for good standing on your payments for the Repeat Home Buyer Tax Credit? Seems there should be.
Actually you are required to take out a second “silent mortgage” for the discounted amount. You won’t have to make any payments or pay taxes on this mortgage unless you move out of the house within 3 years of the purchase. Other than that, if someone defaults on the loan or misses payments I believe it is treated as a regular mortgage where you eventually become in danger of losing your home.