Currently it’s a great time to be a first time homebuyer on the Main Line, or any where in the United States for that matter. The main reason being the new first time homebuyers $8000 tax credit that is retroactive to January 1, 2009 and lasts until November 30, 2009. How does the $8000 tax credit work? Basically, if you purchase your first home within the time period mentioned above, when you file your taxes next year you will receive a refund check for $8,000 if you do not owe any taxes. If you owe $3000 in taxes then you will receive a refund check of $5000. Unlike the first time homebuyers $7500 tax credit that went into effect April 8, 2008, you do not have to repay this tax credit back as long as you remain in the home for three years. This tax credit, along with 30-year interest rates being at 4.98% should remove any doubt that this is a great time to purchase your first home on the Main Line.
If you have never owned a home or if you have not owned a home or had any ownership interest in a home in the past three years, then you are considered a first time home buyer. If you are married, both parties have to be first time homebuyers. The home you are purchasing has to be where you will reside over 50% of the time and within the United States. It can be a condo, townhouse, co-op, or a single-family residence. If the home is new construction you have to be moved in by December 1, 2009. It cannot be a vacation home or rental property. The purchase price has to be over $80,000 to receive the full $8000 credit. If the purchase price is less than $80,000 then the credit is 10% of the purchase price.
There are some exclusion’s however. Even if you are a first time homebuyer, you will not qualify for the tax credit if your modified adjusted gross income is above $95,000 or if jointly it is above $170,000. You are also excluded if you have purchased your home from a close relative such as a parent, grandparent, spouse, child, or grandchild. Also, you cannot be a nonresident alien. The good news is that most first time homebuyers will qualify and will receive a huge benefit from purchasing their first home in 2009.
The new $8000 first time homebuyers credit, historically low interest rates, large inventory of homes at great prices makes this the best market in a long time for first time homebuyers on the Main Line.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote