This may provide some answeres for you. Great questions and I hope this has been a help. Make it a great day...
Here's the link to the comparison of the 2008 Tax credit "loan" and the 2009 tax credit. http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c
Hope that helps,
Terrence Charest, e-ProÂ®
Century 21 Associates
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Willow Grove, PA 19090
Cell (Preferred): 877.614.1494
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I wrote two great articles on the tax credit that has received a lot of media attention. Take a read at http://www.reneeporsia.com/renees-new-blog-.asp
If you have any other questions, feel free to contact me.
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
You WILL get the money as a lump sum if you have already paid your taxes. For example, if your tax liability for 2008 was $6,000 and you paid $6000 in withholding, you will get a check for $8000. If your liability was $10,000 and you only paid in $6000, then you would only get a check for $4000.
If you wait to file your 2009 taxes and pay all of your appropriate withholding during the year, you will get the full check when you file in for 2009 in 2010.
Carol Murray Cei
You do not get the money in a lump sum. It is a credit. Read the link above for details and talk to an accountant for tax advice.
Put simply...here is how it works. Buy a home from 01/01/2009 through 11/30/2009 and you will receive 10% of the sale price - up to a maximum of $8,000 - as a tax credit if you are a first time buyer, or if you have not been on a deed for 3 years.
If you settle before you file your taxes for 2008, you can claim the tax credit on the 2008 return so that you can get the money right away. If you file your taxes and then purchase, you will have to check with your tax preparer to see how quickly you can get the refund.
I don't know what the $7500 FHA loan is that you refer to. That was probably the previous tax credit from 2008. Forget about that...it's over, but the $8,000 is better because it doesn't have to be repaid.
You can also get up to 6% seller assist towards your closing costs. That should get you going into your new home.
If you need any additional help, please contact me at your convenience.
Carol Murray Cei
The revised $8,000 tax credit (was $7,500) is a great opportunity for a first time homebuyer to take advantage of before the end of November this year.
Check out our site which has a chart about the tax credit.