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 broker, I’m your guy. Call me at 863-604-3019 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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- What Every Florida Home Buyer Needs to Know About the $8000 First Time Home Buyer Tax Credit Florida first-time home buyers are in a great position...
