The Homebuyers Tax Credit for Active Duty Military
by Matt Polsky
For many first-time and repeat homebuyers, the tax credits distributed by the government are no longer available. However, for active duty service members, the deadlines for the tax credits have once again been extended. This allows many service members the chance to become eligible and receive up to an $8,000 credit on their new home purchase.
Congress first extended the homebuyer tax credit for veterans and active duty service members who served for at least 90 days from January 1, 2009 and May 1, 2010. The extension was granted to ensure that veterans and active duty service members, ordered to serve overseas, were not excluded from receiving the tax benefit.
Last year Congress decided to extend the bill one more time to give our service members an even larger chance at becoming eligible. To receive the one-year tax credit extension, military homebuyers must enter a binding sales contract on or before April 30, 2011 and close on their home by June 30, 2011. If a military member was not able to complete 90 days of service outside of the U.S. because of medical reasons, he or she may also be eligible for the tax credit extension.
To become eligible for the tax credit extension, service members must have served on â€œofficial extended dutyâ€ which is defined as a duration of extended service occurring between December 31, 2008 and May 1, 2010 for at least 90 days. Those applying for the homebuyer tax credit must also be â€œa qualified service memberâ€ meaning a member of the U.S. armed forces or the U.S. Foreign Service, or an employee of the intelligence community.
Many veterans considering buying a home under the homebuyer tax credit program may also be eligible for a VA home loan. A VA home loan affords service members the opportunity to achieve affordable and easily accessible financing for their home purchase with a less stringent credit requirement. Using a VA home loan in conjunction with a first-time or repeat homebuyers tax credit, can save a borrower thousands over the life of their loan.
For more information or to find out if you are eligible for the tax credit or a VA loan, contact a VA loan specialist. VA loan specialists will be able to quickly access the forms needed and determine eligibility.
Matt Polsky is a mortgage commentator for VA Mortgage Center.com. VAMC is the Nationâ€™s leading provider of VA home loans, securing over $1 Billion in VA Loan financing in 2010.