On November 6, 2009 new legislation was signed into law extending the existing First Time Buyer Tax Credit and expanding it to include existing homeowners. Let me explain a little bit about changes made to the existing credit first:

As a First Time Buyer, you are eligible for the full credit if:

• You are single and make $125k or less OR married and make $225k or less, based on MAGI.
  
• You have not bought or sold your primary residence in the past 3 years.
• You must enter in to a binding contract to purchase prior to April 31, 2010 AND
  
• Title of the property being purchased transfers (closes) prior to June 30, 2010.
• The purchase price of the home is between $80k and $800k.
• You are a US citizen, currently filing taxes.
  
• You do not owe back taxes.

Previous MAGI restrictions capped at $75k for single and $150k for couples, annually, so there has been a significant raise in income limitations, allowing for more eligible persons to receive the full $8,000 credit. The only other major difference is the way that they structured the deadline for the new credit. There is a date in which you must have a contract on a home and a subsequent deadline in which you must transfer title.

As a First Time Buyer, partial credit is available if any of the following apply:

• The home is purchased for less than $80k.
• You are single and make between $125-145k or married with a combined income of $225-245k, based on MAGI.
  
• You currently owe the IRS less than $8,000 in taxes.

The new law extends the Home-buyer credit to existing homeowners who wish to move-up or over or down or wherever they choose to go! It is similar in many ways to the First Time Buyer credit. Existing homeowners will receive a $6,500 credit.

As a Repeat Buyer, you are eligible for the full credit if:

• You are single and make $125k or less OR married and make $225k or less, based on MAGI.
  
• You have owned and occupied your home for 5 consecutive years of the 8 years prior to purchase date.
• You must enter in to a binding contract to purchase prior to April 31, 2010 AND
  
• Title of the property being purchased transfers (closes) prior to June 30, 2010.
• The purchase price of the home is between $65k and $800k.
• You are not purchasing your new residence from a family member.
  
• You are a US citizen, currently filing taxes.
  
• You do not owe back taxes.

As a Repeat Buyer, partial credit is available if any of the following apply:

• The home is purchased for less than $65k.
• You are single and make between $125-145k or married with a combined income of $225-245k, based on MAGI.
• You currently owe the IRS less than $8,000 in taxes.

Credit may be available to nonresident aliens who are existing homeowners, as well.

As I stated in my previous blog on the credit…..

If you are an unmarried couple purchasing a home in which one of you has bought or sold in the past three years, the one who has not owned a home is entitled to the credit! This does not apply to married couples.

You can receive the $8,000.00 prior to filing your 2009 taxes by filing an amendment to your 2008 taxes. Same goes for next year!

If you qualify for the credit and plan to purchase before the deadline, you can also decrease your income tax withholding to allow extra bring home money to put down on your purchase. “Bridge loans” are not available in Oklahoma. If you have lender related questions, please contact Gregg Long at First American.

The tax credit applies on existing single-family homes as well as new homes, townhouses, condominiums, manufactured homes and houseboats (believe it or not!) Some restrictions apply to new construction.

For a free, no risk, no hassle ( I swear!) list of properties that match your needs, CALL OR EMAIL ME….today! (405) 365-5320 I look forward to helping you find the home of your dreams and getting you the money you need to make it your own! You can also search the OKC MLS via my website!