Amy Procaccino and Wendy Frace

What is the homebuyer tax credit and how do I know if I am eligible?

By now most potential homebuyers have likely heard about the Federal Homebuyer Tax Credit. Since it’s renewal and enhancement in November 2009, countless American Homebuyers have taken advantage of this program. Here are some simple facts on the Program. To take advantage of this program, a potential buyer must be in contract to buy an owner occupied real estate property by April 30th, 2009 and must close on that property no later than June 30th, 2009.  Eligible properties include single-family homes, condos, townhomes, and co-ops.

The Federal government currently offers 1st time homebuyers a tax credit up to $8,000, and eligible current homeowners who are buying a new owner occupied home can get up to $6500. The funds are in the form of a tax return refund when filed at the end of the tax year. IRS created a specific form 5405 for this purpose. This money is not available at the actual closing of the home. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.

There are also income restrictions. A single person can make up to $125,000 per year to be eligible, and a married couple can make up to $225,000 combined.

For more information, please call us or visit the IRS website for more detailed information. WWW.IRS.gov

Amy Procaccino and Wendy Frace are recognized as the Top Two Producing Loan Officers nationwide for Gateway Funding, one of the largest independent mortgage bankers in America. With a combined 30 years of experience, they set the standard of professionalism and service unmatched in the mortgage industry. They encourage you to call them and feel the difference!