Last Call for the $8,000 Homebuyer’s Tax Credit

From Kayla on April 9th, 2010 in Tools and Tips

If you were thinking about cashing in on the homebuyer’s tax credit, the clock is ticking. And don’t let the last extension fool you; this time, they mean business.

In order to qualify for the $8,000 return, you must sign your new home contract by the end of April and close by July 1st. first time homeowners credit However, don’t be surprised if it takes a while to actually get your hands on the money. The delay in return disbursement has increased since the credit was first put in place.

Although the money is tempting, we advise you to look before you leap. First things first: make sure you qualify for the credit. If you haven’t owned a home for the past three years, then you’ll either receive the $8,000 or 10% of the original purchase price (whichever is lower). You can also receive a lower credit of up to $6,500 for a trade-in (i.e. you’ve owned a home for the past five years but are looking to move).

However, if you earn more than $125,000 as a single buyer or $225,000 as a couple, or if the new home costs over $800,000, you are ineligible for either credit.

Another point to pay attention to is the area in which you’re looking to buy. If home values are expected to continue falling in that particular state or town, it may not be the wisest investment. After all, law requires you to keep the new home for at least three years.

3 Responses to “Last Call for the $8,000 Homebuyer’s Tax Credit”

Rockland Sees Rise in Remodeling Projects | Local Remodeling Says:

July 1st, 2010 at 10:52 am

[...] the federal tax credit for new homebuyers expired earlier this year, analysts in Rockland, NY were waiting with bated breath to see how the [...]

Will Philly Homes Sell without the Homebuyer Tax Credit? | Local Remodeling Says:

July 6th, 2010 at 3:56 pm

[...] the Philadelphia housing market faces the end of the homebuyer tax credit and its residual effects, many homeowners are wondering how they can sell their homes without the [...]

Cleveland Homebuyer Tax Credit Extended through September | Local Remodeling Says:

August 25th, 2010 at 9:38 am

[...] over 180,000 potential homebuyers struggling to push their sale through by the September 30, 2010 tax credit deadline, the entire mortgage system has been buckling under the pressure. Luckily, new legislation has been [...]

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About the Author:

Kayla Albert
A freelance writer by trade and an artist at heart, Kayla is a spastic go-getter who likes to believe she is on the cutting edge of new trends in any arena. When she isn’t playing with words, she is most likely enthralled by some horrific reality show or reading a new self-help book. Before joining the fantastic CalFinder team, Kayla worked towards her bachelor’s degree in English Writing from the University of Colorado at Denver. She is committed to bringing a quirky edge to remodeling ideas and home design. You can also read Kayla's work at Confessions of a Perfectionist.