First Time Home Buyer Stimulus
Owning a home is a dream of any individual. However, as fate would have it, current economic crisis, doubled with the rampant job cuts have made this dream almost impossible. President Obama’s introduction of real estate stimulus however, has made this goal achievable significantly for first time buyers of home.
This real estate stimulus package offers a tax credit of ten percent on the home’s purchase price to individuals with maximum amount of $8,000. These are for homes that are purchased between the month of January 2009 to April of 2010. For those familiar with this program, the recent legislative changes has extended the previous purchase deadline December 1, 2009. Sales that occur by June 30, 2010 are covered provided there is a binding contract entered into by the 10th of April, 2010.
The key point that worth the mention here is that this kind of credit is grant which does not need pay back unless the home is sold within first three years after purchase. Entire credit amount will be deducted from total taxes that is owed to the government. Therefore, any individual who qualifies for this credit owes $8,000 to the government in taxes who would then owe nothing. However, there are some criteria one need to meet to qualify.
Tags: House & Home