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Search the San Diego MLS(includes all areas in San Diego County)
September 05, 2008
More Details from the 2008 Housing Act
As we reported in an earlier article, the new Housing Act of 2008 offers first time home buyers, who qualify, a
tax credit up to $7,500. First time homebuyers are considered to be those who have not
purchased a home in the last three years. Another requirement is you must purchase a home before
July 1, 2009. Tax credits will go to those who purchase single family homes, condos, townhomes and
even those who purchase a houseboat will be eligible.
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Income requirements are gross income of $95,000 for the single and $170,000 for the married. However, if you are
over those amounts you still may be eligible for a partial credit.
Here is what I like about it all: potential homebuyers who think they are able to qualify for the credit are allowed to
decrease their tax withholdings. Basically, the homebuyer is allowed to reduce their tax withholding which allows the
buyer to get the cash by increasing their "take home pay". That money, in turn, can be used as a downpayment.
What's the catch? Well, you must repay the money to the government. However, you have fifteen years to do so and it
is interest free. You are only expected to pay the minimum of five hundred dollars a year. In addition, you will not
have to begin paying it back until two years after you receive the credit. Or you can pay the amount back if there
is sufficient profit from the sale of your home, if you decide to sell it later.
In closing, the government hopes this will help the housing market recover and also aid in the recovery of our economy. It's
not free money, but there is no interest accumulating as you pay it back.
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