TAX CREDITS - Do you qualify?

NEW PRESS RELEASE MAY 29, 2009: HUD action allows homebuyers to apply the $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home! These actions permit the first-time homebuyer's anticipated tax credit under the Recovery Act to be applied toward the family's home purchase right away! The funds can be used for additional downpayment, closing costs or rate buy-down.

For more information you can read HUD's mortgagee letter released on May 29, 2009 or speak to your lender about the details.
_________________________________________________________________________________________________

Also, you still may be eligible for 2 different Tax Credits...

FEDERAL TAX CREDIT - Must purchase before December 1, 2009!

• The tax credit is available for qualified FIRST-TIME HOMEBUYERS only.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

• The tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has NEVER BEEN OCCUPIED.
• The buyer must reside in the NEW HOME for a minimum of 2 years immediately following the purchase date.
• California allocated $100,000,000 for this tax credit, which is available on a first-come, first-serve basis.
• The tax credit amount is equal to 5 percent of the purchase price or $10,000, whichever is less.
• Taxpayers must apply the total credit in equal amounts over three successive taxable years beginning with the taxable year in which the new home is purchased.
• Applications must be filed within one week (seven calendar days) after the close of escrow.