Do I quality for a tax credit

Lot of persons want to know if they should buy now. I say yes. Home prices in Renton are at a 3 year low. We have not see price drops like other places in the nation but there has been about a 6% drop. True it is harder to get a loan but if you really want to stop paying rent and buy your own home there are steps we can do to make that happen.

First Time Home Buyers all do have the extra benefit of the new tax credit. This tax credit is due to the passage of HR 3221. The Housing and Economic Recovery Act of 2008. If you or someone you know has been considering buying a home, this benefit is worth considering
What can you do with a $7500 interest free loan? Here are a few ideas:

Fund an IRA.
Pay off a credit card.
Fund an emergency reserve savings account (interest bearing.)

Who Qualifies?
* Homebuyers who have not owned a home in the past three years.
* FTHB's who purchased a principal residence between April 9, 2008 and July 1, 2009.
* Maximum credit is 10% of the sales price up to $7,500.
* Tax credit is repaid over 15 years to the IRS.
* This is realty an interest free loan from Uncut Sam. If the home is sold, the tax credit balance is repaid at that time.

Who Doesn't Qualify?
* Purchases from a person who is related to the homebuyer.
* If the property is sold or ceases to become a principal residence before the end of tax year.
* If modified Adjusted Gross income exceeds $95,000 (individual) or $170,000 (joint). Credit phases out for individual AGI between $75,000 - $95,000 and between $150,000 - $170,000 for joint filers.

Always check with your Tax Advisor.

Lonnie Snyder
Keller Williams Realty Southeast Sound
Phone: 206-406-2710
E-Mail :
Lonnie Snyder is a full time real estate agent and REALTOR® with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers in Washington’s Kent, Renton, Newcastle and South Bellevue.

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