Florida mortgage borrowers received some great news regarding the First-Time Home Buyer Tax Credit extension. Congressional members not only voted to extend, but they also expanded the credit, and the White House is expected to sign in the extension into law later today.
The expiration date for the new version of the First-time home buyer tax credit has been moved forward to the spring of 2010 – with home buyers in Florida and across the country required to be under contract by April 30, 2010, and to be closed by June 30, 2010.
For the most part, Florida mortgage borrowers can expect similar requirements as were part of the last tax credit:
- Buyers may not purchase their home from a spouse, parent, or child
- Buyers are not permitted to purchase the home from an entity in which they are listed as a majority owner
- Buyers may not receive the home through either a gift or inheritance
- All parties to the purchase must meet eligibility requirements
Important Updates to the New First-Time Home Buyer Tax Credit
Florida mortgage borrowers should note that there are a few new wrinkles in this latest iteration of the tax credit. First, the definition of “first-time home buyer” has been expanded to include most homeowners with at least 5 years in their current home. This is great for “Move-up” home buyers in Florida, as they can now stake a claim up to for a credit with the IRS of up to $6,500.
Other eligibility changes Florida mortgage borrowers need to be aware of include:
- The subject property sales price may not exceed $800,000
- The subject property must be a primary residence
- Income limitations have been raised to $125,000 for single-filers and $225,500 for joint-filer
And remember, folks - this First-Time Home Buyer program provides Florida mortgage borrowers and other home purchasers with a true tax credit – not a deduction. This means that you, as a tax filer will receive a cash payment of $2,000 from the U.S. Treasury if your “normal” tax liability totals $6,000 and you are eligible for all $8,000 available under the new law.
The complete list of qualifying criteria is posted on the IRS website. Be sure to review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2009.
It’s 5 months away.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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How does “under contract” play out in a short sale scenario with the buyer and seller agreed and waiting for the bank of the seller to agree as well? Does Florida recognize it as under contract with just buyer and seller?
Hey Julie! I’m not a Realtor or an Attorney, but it is my understanding that you have a binding contract for a set time period with the understanding that you need third party approval (The Bank) in order to move forward.
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Update:
I put this question out to my (LinkedIn Network , and this was the best answer I received.
In a short sale, in CT, the buyer and seller are not under contract because of the third party approval, therefore, the buyer can back out without jeopardizing their deposit. With the new Home Affordable Forclosure Alternative program(HAFA) which was signed into law on April 5, 2010 by President Obama, we may see a stream lined process to doing a short sale. Historically, a short sale could take a long time to get approval, because if the package sent to the bank is not done right the bank will request more info, but the file goes to the bottom of the pile. With HAFA the owner, and/or their attorney, in conjunction with a REALTOR will contact the bank discuss current market value of the property BEFORE it goes on the market. The bank will provide a range that they will accept as payoff and the house is listed based on that value. Since the bank has already agreed to a value, once the contract is in place the third party approval should take short time. We’ll see how that plays out, I have one in the process now.
Link provided: http://www.realtor.org/government_affairs/short_sales_hafa
Has this incentive been extended? I have heard “rumors” of another extension.
Hey Deb – not for regular folks – but there is a huge extension for Military and Government Workers! See this post for details: http://www.floridamortgageblogger.com/2010/04/18/homebuyer-tax-credit-extended-for-military-foreign-service-and-intelligence-community-personnel/
Am, but I want to buy from Bulgaria and I am an EU citizen so I do not need a visa.
I do have a home that costs around 75,000 pounds and I can pay for 25% of that to get a mortgage.
I have a good credit rating but my brother and my mother with the help of Father / its mother / father has a bad history, they all want to buy now out of debt.
We also mother / father of the first down as many things as mobile phones have been afraid to ask a company and it’s a great thing.
I can not help on the web to buy abroad or to find any information. The stuff we never learned about my school (no, etc. GCSE school was crap and I failed a year every mosty as I found out later next year.)
I buy a home from Bulgaria and I how to pay for it, Britain is too expensive to move there and we all plan to stay living together with the help of my family can pay £ 25,000 savings ..
markjackson
Hey guys i am brownv,
I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say I’m glad I found your blog. Thanks
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First Time Buyer Mortgages