Housing-Stimulus Incentives could be a good thing!
The tax breaks from the Housing-Stimulus package is worth looking
into IF you have not owned a principal residence in the three previous
years.
The Housing and Economic Recovery Act of 2008
which passed in July of this year, means if you purchased
a home from 4/9/2008 to 11/30/2009, you will have some kind
of refund. Currently, the one in effect right now is a TAX CREDIT
of up to $8000.!!!!!!!!
A new homebuyer is entitled to a tax credit equal to 10%
of their purchase price up to $8000.00 with some considerations
relative to the income level they declare and their martial status.
This is NOT a reduction in taxable income but rather reduces
the amount of tax OWED up to $8000.00 OR MONEY TO
YOU if the taxes owed are LESS. If less, you will get the money
directly sent to you!
It looks like the end date may be extended on this and realtors, certainly myself
included, have sent an appeal to Washington to see that the extension is instigated.
Meanwhile, the way the bill reads and this IS IMPORTANT, your new home must be
purchased and the loan CLOSED no later than 11/30/09!
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Contrary to how Home Loans seems to work in the past, it is interesting to note that NOW more buyers are
wanting FHA loans versus Conventional. One reason is FHA only requires 3.5% down which can also be
gift money whereas in Conventional loans, you must have 5% down and NO gift money allowed!
In addition, with FHA, the PMI (Property Mortage Insurance) is HALF the amount of Convenational.
For further information on these issues, write: david@homelendingoftexas.com
