
Almost everybody has heard of the $8,000 first-time homebuyer tax credit, which has been extended through June 30, 2010, but what about the $6500 federal tax credit for “move-up” homebuyers? Unlike the $8,000 for first-time buyers, anyone who has lived in their home for five years and has an income that doesn’t exceed $125 K, if you’re single and $250 K if married can claim the credit at closing.
You don’t have to move-up to claim the credit either; you can downsize if you wish, but you only have until April 30, 2010 to contract and a month more, until June 30, to close.
The intended purchase must also be your permanent residence but you don’t have to sell your present home to qualify; so you could rent it out until the market comes back and then sell it.
Like the $8,000 first-time buyer credit, you can purchase almost any dwelling, be that a mobile or manufactured home, new construction or existing and you could even claim it on a boat … ah, that is if you plan to live primarily on that boat.
The rules have been revised for both tax credits and include requirements of submitting a copy of your HUD-1 statement along with your tax credit request.
Remember you only have until April 30, 2010 to find and contract for the credit to be fully implemented. This is really another sign that there’s never been a better time to buy, historically low interest rates, along with historically low prices AND a tax credit. If that doesn’t make up your mind for you, brother, I am out of ideas.
May our friends respect us, trouble neglect us, angels protect us and heaven accept us.