FIRST-TIME HOMEBUYER TAX CREDIT 

Here’s a great summary of the first-time homebuyer tax credit provided by Debbie Owens, one of our home mortgage consultants at LG Real Estate.  Mortgage rates are at a historic low and inventory in many Cary neighborhoods is high.  So if you are a first time home buyer or have not owned a home in 3 years, give us a call.  Your timing is perfect!

FEATURE EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit Lesser of 10 percent of cost of home or $8000
Eligible Property Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
Refundable Yes.  Reduces (or can eliminate) income tax liability for the year of purchase.  Any unused amount of tax credit refunded to purchaser.
Income Limit Yes.  Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000).
First-time Homebuyer Only Yes.  Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
Repayment No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture If home is sold within three years of purchase, entire amount of credit is recaptured on sale.  Applies only to homes purchased in 2009.
Termination December 1, 2009 
 Effective Date January 1, 2009