New Federal Tax Credit Provides Opportunity For First-Time Homebuyers

Effective January 1, 2009, qualified first-time buyers may be eligible for a federal tax credit of up to $8,000.00. Some highlights below:FOR FIRST-TIME HOMEBUYERS ONLY:Qualifying homebuyers have not owned a principal residence during the three-year period prior to the purchase.AMOUNT OF THE TAX CREDIT:Equals ten percent (10%) of the home's purchase price up to a maximum of $8,000.00.LIMITED TIME ONLY:The tax credit is available for homes purchased on or after January 1, 2009 and BEFORE December 1, 2009.NO REPAYMENT REQUIRED:Unlike the previous tax credit, this tax credit does not have to be repaid, but homebuyers must use the residence as a principal residence for at least three years OR face recapture of the tax credit amount.TAX CREDIT IS REFUNDABLE:The Homebuyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. A refund check may be issued to the taxpayer for a portion or even all of the refundable tax credit (depending on the taxpayer's tax liability).INCOME RESTRICTIONS:Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. (Partial tax credits may be available for taxpayers with incomes over these limits. Restrictions apply and the borrower should consult their tax advisor for details).2008 TAX RETURNSTax credit can be claimed on 2008 federal income tax returns IF the home was purchased on or after January 1, 2009.

Troy Lepisto
Home Loan Consultant
Santa Fe, NM 87505
505-984-0297 Office505-670-6399 Cell
1640 Old Pecos Trail Suite D
Mail Stop: MSN-BR465-8Santa Fe, NM 87505