While the home buyer tax credit opportunity ended last year for most Americans, it is still available for some members of the military and certain other federal employees serving abroad!
Low interest rates on VA and other loans , combined with the se federal tax credits* for certain first-time home buyers and move-up buyers , make home buying an exceptional value right now. But, time is running out, because the credits, which can be worth up to $8,000, are only available on sales contracts signed by April 30, 2011 for purchases that will close by June 30, 201 1 .
Who is Eligible for these Tax Credits?
Members of the uniformed services, Foreign Service members, and intelligence community employees are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who served on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 201 0 .
Two Types of Credit are Available
First-Time Home Buyer Tax Credit
· First-time home buyers are eligible for a credit of as much as 10% of the purchase price, up to a maximum of $8,000.
· First – time buyers are people, including both partners of a married couple, who have not owned a principal residence during the three years prior to purchase.
Long-Time Home Buyer Tax Credit
· Taxpayers who have owned a principal home for a period of five consecutive years during the past eight can qualify for a tax credit of as much as 10% of the purchase price, up to a maximum of $6,500, on a new principal residence.
· The new home does not have to cost more than the current dwelling.
Eligible military and federal personnel should act now to receive their tax credits.
Contracts must be finalized by April 30, 2011. | Purchases must close on or before June 30, 2011.
Information courtesy of Kathleen Condry, Mortgage Consultant, SWBC Mortgage***