First Time Homebuyer Credit Is Alive

First Time Homebuyer Credit Is Alive

"You mean to tell me that the First Time Homebuyer Credit is alive and well," said Michele. "Who qualifies?"

"Members of the Armed Services" said Regina. "This includes the Coast Guard. The commissioned corps of the National Oceanic and Atmospheric Administration and the Public Health Service are also part of this program."

"What about the National Guard?" Michelle wanted to know.

"The National Guard was not listed in the IRS First Time Homebuyer Credit literature I saw. It did mention the Foreign Service. The intelligence community in a number of agencies is also included" replied Regina.

"You have to serve on extended duty outside the United States for at least 90 days to qualify First Time Homebuyer Credit. This duty has to occur after December 31, 2008 and end before May 1, 2010.

"You have to purchase your home before May 1, 2011. Entering a binding agreement before May 1st and purchasing the property before July 1st qualifies for the First Time Homebuyer Credit."

"What if you build a house?" asked Michelle.

"That's ok. You have to make commitment before May 1st 2011 and move in prior to July 1st."

"The First Time Homebuyer Credit requires the main home be in the United States. A duplex or a house with a detached building used for business purposes only receives partial credit" responded Regina.

She added "The home cannot cost more than $800,000. If it does, you can't claim the First Time Homebuyer Credit at all. You and your spouse both have to be first-time homebuyers. This means not owning a home for the three years before you buy this time."

Michelle asked "Are there any other conditions?"

"Yes. You can't make more than $125,000 or $245,000 if you're married filing jointly. Over that it phases out until you reach $145,000 or $245,000 for married filing jointly. Other disqualifiers include being under 18, dependent on someone's tax return, nonresident alien, house is inheritance, bought from a relative or buying house from business you own more than half" explained Regina.

"You can claim 10% up to a max of $8,000 when you file jointly. There are a couple of other little-known features to this program:

• Unmarried individuals can buy a house together. They share the credit.
• "House" can be a houseboat, mobile home, cooperative apartment or condominium."

"So the first-time buyers program is alive and well for members of the armed forces, Foreign Service and the intelligence community. It has to be your main residence. You can't make too much or buy too much house. You can receive a 10% credit up to a max of $8,000. Sounds like speaking to a tax accountant would be a good idea" said Michelle.

The First Time Homebuyer Credit requires a binding agreement on a house prior to May 1, 2011. Call your mortgage loan officer now and get pre-approved for a loan. Time is running out.

Kathy Godin, Mortgage Loan Officer & publisher of http://raleighmortgagegals.com Easy-to-read articles on mysteries of FICO Scores, tips on buying/selling your home and insider information on qualifying for mortgages. She is still in the trenches writing mortgages in NC - http://alliedcorphome.com/kgodin. Come visit. Article Source: http://EzineArticles.com/?expert=Kathy_Godin