Have you collected yours?  Thousands have taken advantage of the $8,000 tax credit available to first time homebuyers purchasing a home between January 1, 2009 and December 1, 2009.  Call your RPR Real Estate Services expert today at 313-237-1300 or email Info@RPRRealEstate.com.  Servicing the City of Detroit as well as Oakland, Macomb and Wayne Counties.

$8,000 First - Time Homebuyer Tax Credit FAQ

When do I need to purchase a home to qualify?

If you buy a home between January 1st 2009 and December 1st 2009 and close escrow during these dates, you will qualify for an $8,000 tax credit.  The property must be your primary residence and you will have to meet additional simple requirements.   Contact RPR Real Estate today Info@RPRRealEstate.com

How does the law define “first time homebuyer”?

The law defines “first time Homebuyer” as a buyer who has not owned a principal residence during the three year period prior to the purchase

What are the other requirements to qualify?

All U.S. citizens who file taxes are eligible to participate.  An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.

How do I apply for the credit?

Taxpayers should use IRS Tax Form 5450 to claim the first time homebuyer tax credit.

Does the credit have to be repaid?

No.  Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.

Can I use the tax credit toward a down payment or other closing costs?

Yes, an announcement made on May 29th allows the tax credit to be used toward purchase costs of a home, including down payment in some cases.  This can be done one of two ways.  First, buyers using and FHA approved lender can sell their anticipated tax credit to the lender and use the proceeds to immediately apply the tax credit to any down payment above the minimum down payment of 3.5% required with with FHA insured mortgages.  Second, buyers who receive financing through state housing finance agencies and certain non-profits will be able to use the tax credit for their down payments via a tax credit advance loan that does not result in any cash back to the buyer.  In both cases, buyers can only access the credit after filint their tax returns with the IRS.

Contact Your RPR Real Estate Services representative at 313-237-1300 or email us at Info@RPRRealEstate.com today and own your first home using the $8,000 first time home buyer tax credit.