$8000 Tax Credit Questions Answered!

There is some confusion surrounding all of the qualifiers attached to this new Tax Credit in the Stimulus Plan. Our goal in publishing this is to tackle the questions one or two at a time & to provide potential buyers with all of the information they may need to take advantage of this incentive! If you missed the last post simply email me at homes@thenaylorteam.com  & I'll be more than happy to bring you up to speed!

On to Questions #2 & 3:

What is the definition of a firstime home buyer?

The tax credit law defines a "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. If you are married, both spouses cannot have owned a home.

For example, if you didn't own a home but your spouse did, you do not qualify.  For unmarrried buyers, the credit amount can be given to any buyer who qualifies as a first time buyer, for instance, if a parent jointly purchases a home with a son or daughter. If you owned a vacation home or rental property not used as a principal residence you are not disqualified as a first-time buyer.

How do you know how much of a credit you are getting?

The tax credit is 10% of the home's purchase price with a maximum of $8000 credit.