Hi Charles,

This website should answer all your questions:
http://www.federalhousingtaxcredit.com/

Also if you are a first time home buyer, you may want to hire a real estate agent who is aware of local down payments and other programs and experienced with them.

For 2010, Here is the Extended First-time Homebuyers Tax Credit
To be a candidate for the first-time homebuyer tax credit: – A first-time home buyer is anyone who has not owned a home within three years.

• The maximum tax credit for married couples is $8,000.00


• The maximum tax credit for married individuals filing separately is $4,000.00.

• A purchase must be under contract for a principal residence – on or before April 30, 2010.

• A purchase must be under contract by April 30, 2010 and must close on or before June 30, 2010.

• After Dec. 1, 2009, income limits rise from $75,000.00 to $125,000.00 for single buyers and $150,000.00 to $225,000.00 for married couples; up from limits effective through November 30 of $75,000.00

• The maximum home value purchased cannot exceed $800,000.

• The buyer will occupy the home for three years or more.
• The buyer must be at least 18 years old on the date of purchase. For a married couple, only one spouse must be 18 on date of purchase.

• To qualify purchases made in 2010, you will have the option of claiming the credit on either your 2009 or 2010 income tax return.

For 2010 Current homeowner tax credit:

To be a candidate for the current home owner tax credit - The current homeowner has owned their current home and and used the same residence as a principal residence for any consecutive five-year period in the previous eight years.

•Existing married homeowners who purchase a home may now claim a tax credit of up to $6,500.

• Existing homeowners who are married individuals filing separately who purchase a home in 2010 are limited to $3,250.

• A purchase must be under contract on or before April 30, 2010 must close on or before June 30, 2010.

• After Dec. 1, 2009, income limits rises from $75,000.00 to $125,000.00 for single buyers and $150,000.00 to $225,000.00 for married couples; up from limits effective through Nov. 30 of $75,000.00.


• The maximum home value purchased cannot exceed $800,000.

• The buyer will occupy the home for three years or more.
• The buyer must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.

• To qualify purchases made in 2010, you will have the option of claiming the credit on either your 2009 or 2010 income tax return.


Buyers ready to begin their home buying search can contact Susan Penn, EWM Realtor at 954-557-5993. You may be interested in a Short Sale, approved Short Sale, Foreclosure or Regular Sale!

Some CPA’s are having your 2008 returns amended so you can receive this money before closing. It all depends on how they interpret the new Law. The tax form that needs to be signed is 5405.

Charles...here's some common Q&A on the first time homebuyer tax credit:

When do I need to purchase to qualify?
If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for an $8,000 tax credit - as long as it is your primary residence and you meet the simple requirements.
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 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 May 29 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 an 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 percent required 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 filing their tax returns with the IRS.

Joseph Mancini
AVALAR Atlantic Properties
office: 856.256.1250
mobile: 856.275.6433
fax: 856.879.2024
email: Joe@landmanNJ.com http://www.atlanticpropertiesnj.com