HOME TAX CREDIT & HUD
FIRST TIME HOME BUYER TAX CREDIT
What is the Homebuyer Tax Credit? You may be able to take the first-time homebuyer credit if you were an eligible buyer who purchased a home as your primary residence in 2008, 2009 or 2010. Eligibility varies depending upon the year of your purchase. For more details, please see the IRS’ First Time Homebuyer Credit website. But an overview of the program is described below.
- $8,000, for First Time Homebuyers – if you purchased your home in 2009 or 2010 prior to June 30 (must be in contract by April 30. $6500 for repeat buyers – restrictions apply.
- Not more than 10% of the purchase price of the home.
- You are allowed the full amount of the credit if your modified adjusted gross income (MAGI) is $75,000 or less ($150,000 or less if married filing jointly). The phase-out of the credit begins when your MAGI exceeds $75,000 ($150,000 if married filing jointly). The credit is eliminated completely when your MAGI reaches $95,000 ($170,000 if married filing jointly).
- Use Form 5405 to claim the homebuyer credit. The credit may give you a refund even if you do not owe any tax.
- For homes purchased in 2008, the credit operates much like an interest-free loan. You generally must repay it over a 15-year period. For homes purchased in 2009, you must repay the credit only if the home ceases to be your main home within the 36-month period beginning on the purchase date.
GOOD NEIGHBOR NEXT DOOR & HUD HOMES
Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. As properties become available, HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.
How the Program Works – Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for five days.
How to Participate in Good Neighbor Next Door – Contact me directly, I will check the listings fin our area and forward that info to you. We would then submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD’s regulations for the program. HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this “silent second” provided that you fulfill the three-year occupancy requirement. The number of properties available is limited and the list of available properties changes weekly.
I can help you with any HUD properties for investment, occupancy, and with GNND as properties become available for this program.