Photo Courtesy of Creativecommons.orgThe President signed into law the Landmark housing legislation Wednesday. The law is designed to help the housing industry and the credit industry recover from the mortgage melt-down of the past year, and provide stability in the financial markets. Those portions of the bill are important, but some sections of the law impact first time home buyers in a manner they will immediately feel.
One part of the bill does impact “the average buyer” immediately in an important manner. This portion provides a tax credit of up to $7,500 for first time home buyers, whose individual incomes are less then $75,000 or married couples who earn less than $150,000 jointly. The tax credit can be used for homes purchased between April 9, 2008 and July 1, 2009, and should stimulate home buying, reduce excess supply in housing markets and shore up home prices.
The Tax Credit is based the purchase price of the property, being 10% of the purchase price, up to $7,500 (meaning that for most first time home buyers , the credit will be $7,500).
A comprehensive lists of questions and answers about the tax credit program can be found at the National Association of Home Builder’s web site www.federalhousingtaxcredit.com.
So if you are a renter, and you’ve been thinking about buying, or if you haven’t owned a home for three years or more, now is the best possible time to look for that home to help your family build financial stability, on the government’s dime!