There is still hope for all the yougsters out there that don't think they can afford to buy a home in Northern Virginia! Rates are down, there's lots of defaulted mortgages, and plenty of homeowners who are ready to unload their property. Now both houses of Congress have approved an extension and expansion of the first-time homebuyer tax credit, and President Obama is expected to sign it soon. If you haven't owned a home in the last three years you will qualify for a tax credit of up to $8,000!
Even those seasoned homeowners who have owned their current home for at least five years will qualify as a first-time homebuyer. As long as you've lived in it as your primary residence for five consecutive years in the last eight years, you can claim a tax credit of up to $6,500 when you buy and move into another primary home.
Both tax credits expire next spring. To qualify, the purchase contact must be signed on or before April 30, and the deal has to be closed on or before June 30.
If you buy a house for more than $800,000, you can't claim either tax credit. Of course if you've qualified for that big of a loan, you don't need the $8,000 anyway. There are also income limits with the new extension -- the tax break phases out for filers with a modified adjusted gross income between $125,000 and $145,000 ($225,000 and $245,000 for joint filers).
What are you waiting for? Contact dgreco@kw.com and I'll show you a house that will fit your budget!
