I would think most people have heard at least something about the incentives available for first-time home buyers this year. Possibly though some don’t realize that anyone who has not owned a home for the last three years also qualifies.
The federal government is trying to stimulate housing market activity which has slowed over the last couple years. Simply put, if you qualify as a first-time home buyer, and purchase a home in 2009, you can receive up to $8,000 in the form of a tax credit on your federal tax return. Even if someone has already filed the 2009 return, it can be amended to get a refund. For more details and answers to questions, here’s a link to some more info First-time Buyer Tax Credit If you feel like contacting me, I’d be happy to discuss it with you too.
Even though you might not be a first time buyer, this may still help you indirectly. First time buyers typically purchase lower priced homes. That sale frees-up the current owner who typically moves up to buy a home in a higher price range. Then, that sale could have the same result, causing a “ripple effect” all the way up the market.
I guess time will tell what impact it will have ultimately, but I know it is helping to open some doors now that wouldn’t have opened otherwise for people trying to purchase a home. Several people I’m working with have begun the purchase process with an eye toward using the incentive. Everyone’s financial situation is unique, so I always tell them to check with their tax professional early on to see how this program will apply to their own situation.
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