Ok folks.. now its time for an update to what’s really going on with the $8,000 FHA Tax Credit that the government has promised us and so far have not come thru.  They have temporarily pulled the offer off the table for now and it has also been removed at least temporarily from their website.

Don’t worry, we won’t turn this loose till they offer it again. We are not gonna let them get away with this.  The first warning sign came on May 15, 2009 when Hud rescinded the Mortgagee Letter that was suppose to all the tax credit.

Hopefully the tax credit will return to the table soon and what it allows is an $8,000 tax credit for a qualified first time home buyer, when a first time buyer is identified as someone who has not owned a home in the past three years.  It does not mean that it is the first time you ever purchased a home.

However the credit is limited to a max of 10% of the purchase price of the home or a maxmimum of $8,000 which ever is less and it applies to a home purchased after January 1, 2009 and before the end of the year in 2009.  If you are single then your income cannot exceed $75,000 and if married then your max income of both parties cannot exceed $150,000 other wise you will not be eligible for the tax break.

Be careful now, the law does consider both parties individually but it affects the couple as one in some cases.  So what this means is that,  if you have not owned a property  in the past three years but your spouse has owned a principal residence in the past three years, then neither of you will qualify for the tax credit.

Now it does give the kiddies an additional break, where it can apply to unmarried joint purchasers in the following example.  A parent may purchase a home jointly with a daughter or son which will allow the child to take advantage of the tax credit. 

Also ownership of rental or vacation property that has not been used as primary residence will meet the qualification first time home buyers for the tax credit.

IF you are interested in more detail in finding out how to become a recipient of the $8,000 tax credit, please visit our web site at Virginia Beach Foreclosures

This entry was posted on Saturday, May 30th, 2009 at 6:19 pm and is filed under Virginia Beach Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.