Home Sales Expected to Rise  by 900,000

On February 25, 2009 the Internal Revenue Service announced  that qualified first-time homebuyers who purchase a home before December 1, 2009 can claim up to $8,000 on either their 2008 or 2009 tax returns. Unlike the prior first-time homebuyer credit, this is money individuals do not need to pay back.  The following is just a basic summary of the qualification guidelines and are based on each buyers specific qualifications: 

• The maximum tax credit is $8,000, or $4,000 for married individuals filing separately
• All Buyers who have not owned property in the past three years qualify
• Participation in the program requires all Buyers to be a U.S. Citizen and file yearly tax returns
• Single taxpayers with adjusted gross incomes up to $75,000 and married couples up to $150,000 qualify for the full tax credit
• The property must be a single family home, townhome or condominium and applies to newly contructed homes and resale property
• The property must be the Buyers primary residence

"For first-time home buyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman, in a news release. "This important change gives qualifying home buyers cash they do not have to pay back." 

In addition, the U.S. Department of Housing and Urban Development also announced on February 25, 2009 that it will temporarily increase loan limits for Federal Housing Administration-backed mortgages (FHA Loans), also in accordance with provisions in the stimulus. The new FHA limits now go up to $729,750 in high-cost areas. The new limit on FHA's reverse mortgage product also has been raised to $625,500.

Lawrence Yun, chief economist for the National Association of Realtors, said the tax credit and other measures to stabilize mortgage rates and housing markets would probably boost home sales by about 900,000 this year.

For additional information, contact Inman Mortgage Group as our first priority is and has always been, to protect our clients best interest while making a positive difference in their long term security and financial success!

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