Real Estate News You Can Use
August 2008
Risé Johns ASR®, CRS®, GRI
Mortgage Industry News
Real estate is always impacted by mortgage news. The good news is the Housing & Economic Recovery Act of 2008 has implemented a First Time Home Buyer Tax Credit. While a first time buyer needs to have the money for the down payment when they close, they can recoup that money over the next few years. So, if a buyer’s parents gift them the down payment, this is a built-in repayment plan.
The program is for those who have not owned a home in the past 3 years; the home must be their principal residence; the maximum income limits are $95,000 for an individual and $170,000 jointly; the transactions must close between April 9, 2008—July 1, 2009; and the maximum reimbursement is $7,500.
The payment will be claimed as part of the buyers tax return as a tax credit!! Repayment starts 2 years after the tax credit is claimed.
For example: if the buyer obtains an FHA loan and the sales price is $215,000 or less, they can recoup their total down payment. Since the maximum reimbursement is $7,500, any home costing more than $215,000 can only be reimbursed a portion on the down payment.
Obviously this is just the tip of the program. For in-depth details, please give me a call.
Risé Johns has been involved in real estate for over 27 years. Her knowledge, experience and customer service will make your next real estate transaction a smooth one. Call Risé at (512) 267-LAGO for “World Class Service.”
