The $8,000 first time buyer's tax credit has been extended. If you have not owned a home as your principal residence the past three years, you will qualify for the $8,000 tax credit. The tax credit is equal to 10% of the sales price with a maximum credit of $8,000. This credit applies to a sales transaction occurring before April 20, 2010. There are income cap limitations. Single taxpayers whose income is below $125,000 and married couples whose income is below $225,000 will qualify for the full tax credit.
A move-up / repeat buyer tax credit of $6,500 was also passed into law. Eligible buyers must have owned and lived in their previous home for five consecutive years out of the last eight years. The tax credit is equal to 10% of the sales price with a maximum credit of $6,500. The credit applies to all homes priced under $800,000, and the home must be purchased by April 30, 2010. Income requirements are the same as the first time buyer's tax credit ($125,000 for single taxpayers and $225,000 for married couples).
There is no better time to purchase a home. Austin real estate prices are at reasonable levels. It is still a buyer's market, and mortgage rates are below 5% for 30 year mortgages and low 4% for 15 year mortgages. These tax credits will expire, and interest rates will not be this low forever! If you have any questions or need information about purchasing a home or qualifying for a mortgage or need to refinance your existing mortgage, please call us at 512-257-9836.
