2009 & 2010 Home Buyer Tax Credits
Information for Buyers

By Randy Moser, 2010 President Greeley Area Realtor Association

Good news for homebuyers.  Congress and our President have extended the $8000 1st Time Homebuyer Tax Credit and it includes additional incentives to existing homeowners who may wish to "move up" to a different primary residence.  This legislation also includes provisions aimed at reducing fraud through this program.

According to the IRS, about 1.4 million people have used the tax credit since it was introduced this year.  The housing market is a critical component of our economy and this credit has not only infused help nationally but here locally as well.

A 1st time homebuyer is defined under this program as anyone who has not owned a home in the last three years.  If your spouse has, you do not qualify.  The tax credit is 10% of the home price up to a maximum of $8000.  The contract must be written between January 1, 2010 and April 30, 2010.  It must close no later than June 30, 2010.  If you sell your home within three years the credit will have to be paid back.  The tax credit is refundable, meaning after you file your return they will send you a check minus any tax that you would have owed.

In Greeley/Evans, our year to date sales under $150,000 is over 800.  The consensus from our local title companies and lenders is that 1st time homebuyers probably make up about 60% of those sales.  Granted, some of those buyers would have bought without the tax credit but those of us in the industry know that it has really helped our local real estate market for homes under $150,000.

The hope now with the additional $6500 tax credit to "move up" buyers will help spur activity above $150,000 here in Greeley/Evans.  Even though it is referred to as the "move up" program, your next purchase may be either more expensive or less than the home you currently own.  As always, there are numerous qualifications for this credit but they seem very reasonable. There are income limits, home price limits, and you need to have lived in your current home five out of the last eight years, consecutively. the new home must be your primary residence but you do not need to sell your existing home if you would like become a landlord.

The legislation also benefits members of the military.  If members of our miliatary are deployed out of the country for at least 90 days, they are eligible to use the tax credit through April 11, 2011 once they return to the US.  I commend Congress for thinking of them.

With these credits and low mortgage rates, now might be a good time to take advantage!  For lot more questions and answers you may go to www.federalhousingtaxcredit.com