Obama’s Stimulus Package Offers First Time Home Buyers Huge Benefits!

26. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , , , , , ,

If you’ve been following the news, you are likely familiar with the federal government’s 0-900 billion stimulus package designed to boost the economy by creating new jobs, providing mortgage assistance, educational grants, and a suite of other incentives.  A key part of this package is the first time home buyer stimulus program aimed at reviving the ailing housing market by assisting first time home buyers and buyers who haven’t purchased a home in the last three years.  The incentives for those qualifying under this program are such that even those previously opposed to buying a home in this market are now changing their minds.

The main reason the first time home buyer stimulus package is so attractive is that it directly addresses the concerns that most people have about buying a new home.  The first concern that most people have is how they will come up with the down payment.  After all, you must have a considerable sum of money saved away in order to come up with a ten percent down payment.  Thanks to the stimulus package, however, the federal government will help first time buyers by paying a percentage of the down payment.  In other words, you do not have to come up with the full amount on your own.  The second worry is the dreaded interest that accompanies monthly mortgage payments.  There is good news here as well as the federal government has cut interest rates.  Thirdly, those qualifying as first time home buyers can apply for refundable tax credit of ten percent of the purchase price of their homes (up to ,000) if they enter into a binding agreement by April 30th of next year.  This is practically money in your pocket which you do not have to pay back unless you decide to sell or move out of your home within the first three years.

With all these benefits, no wonder more and more people are getting exciting about buying a new home in these tough economic times.  These incentives will not last forever so if you have a steady source of income and are serious about owning your own home, now is the time to act.

Great News for First Time Home Buyers – Home Stimulus Package Now Expanded!

06. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , , , , ,

Has it been three years since you last purchased a home as your primary residence?  Are you now thinking about buying a new home but are worried about the perilous state of the housing market and the financial burdens of making a down payment and making your monthly mortgage payments?  If so, there is great news for you.  The federal government will help you pay a portion of your down payment so you don’t have to come up with the full 10 percent on your own.  To further sweeten the deal, interest rates have been slashed by a couple of percentage points.  And to top it all off, you can get a tax credit of ten percent of the purchase price of your home – that’s up to ,000 in your pocket!  

If you’ve been keeping up with the latest developments, the news just keeps getting better.  The deadline for entering into a contract for buying a home was extended until April 30th of next year.  (You actually have until June 30th of next year to close).  If you are a member of the armed services, Foreign Service, or Intelligence community serving overseas you get an extra year.  This means you have until April 30th, 2011 to enter into an agreement and until June 30th, 2011 to close.  The income limits for qualifying for the tax credit have also been increased for purchases made after November 6th, 2009.  This means more people will now qualify.  Are you picturing your dream home yet?

President Obama and the federal government want the housing market to get back on its feet so if you are seriously thinking about buying a new home, now could very well be the best time.  The incentives will not last forever so make sure plan accordingly, do all your research, and take action.  There are some caveats and restrictions that could impact your eligibility for the tax credit so make sure you familiarize yourself with those provisions.  If you are confident in your financial future, however, you really have nothing to lose and everything to gain by taking advantage of the first time home buyer stimulus package.

How Will Obama’s Stimulus Package Work For You?

15. March 2011 · Write a comment · Categories: General Tax · Tags: , , ,

Don’t expect to get a check in the mail so you can purchase a large-screen television and you won’t immediately notice a difference in your taxes right away. President Barack Obama’s 7 billion stimulus package will not make an immediate difference in your life.

Even though this is one of the largest plans every passed by the United States Congress, it will not directly affect you unless you do not have a job or you are employed in telecommunications, construction or in a energy-efficiency industry. It is also helpful to first-time homebuyers and homeowners who are environmentally conscious.

You might notice an increase in your paycheck because of the “Make Work Pay” credit, in the amount of 0 for single people and 0 for those filing jointly. This will occur through reduced federal payroll taxes and is retroactive back to January 1 and lasts for all of 2009.

As with other tax breaks, there are some conditions. Only individuals earning less than ,000 or couples (filing jointly) earning under 0,000 are eligible.

This is really a small amount, no more than a week, that will help low and middle income families. Just like other tax rebates, it is hoped that these people will save the extra money or use it to pay off some debts. It will cost the government 6 billion and for what is will accomplish and that fact that it will not create any jobs, it seems like a lot of money meant just to satisfy supply-siders.

Those of fixed incomes, like retired people or those who are disabled, will fare even worse. They will get a one-time credit of only 0. Maybe they can buy a smart phone.

More Tax Rebate Articles

Obama’s Stimulus Package is an Incentive to First Time Home Buyers

06. March 2011 · Write a comment · Categories: General Tax · Tags: , , , , , , ,

Everyone knows that for this economic crisis the first time home buyers are also the major reason. Even though Obama makes clear that in his Stimulus Package loans will be provided to first time home buyers. The reason behind this idea is that in USA real estate market has reached its worst mark and to strengthen it, the only way is by boosting many new works and constructions. So if new home buyers are encouraged then the real estate will boost to some level.

This kind of stimulus package applies only to people who haven’t got new homes for at least three years and this plan will make many American people dream come true as their biggest dreams will be getting a own home. This loan is available not only for new home but also for pre-sold homes. If this plan reaches to people in a successful manner then this will create many works for unemployed, construction industry will boom, and unsold homes will come into lights.

In this program the government offers three things to people and they are Tax Credits, Down Payments in Funding and Interest rate at a minimum.

In the case of Tax credit the government offers 10% tax credit for purchase of new homes in the year 2009. This tax credit could be used in an efficient manner like paying the property taxes and recovering some down payment as this will be difficult task for many owners. The same 10% down payment is given for each new home this could be used for making any improvements in home and finally tax rebate is offered to new home buyers with their loan interest.

As it has many benefits to both people and government this program is considered to be one of the greatest ideas of obama’s creative thinking and thoughts.

Obama’s Stimulus Package and Tax Credit for First Time Homebuyers

19. January 2011 · Write a comment · Categories: General Tax · Tags: , , , , , ,

The President’s Stimulus Package may be able to help you buy your first home. Find out whether or not you qualify for the special tax credit available as part of the federal Stimulus Package.

The main thing to consider is that the program is for first time home buyers. If this is your first home purchase, there may be a tax credit available to you. If, for the past three years you haven’t owned a home, you may also qualify. Owning a vacation home or rental property doesn’t make you ineligible for the tax credit.

One question that comes immediately to mind is how much of a tax credit can you get?

The credit can be the smaller of either 10% of what the home costs, or ,000.

In order to qualify, you would have to buy the home between January 1 and December 31 of 2009.

Neither repayment nor recapture are applicable unless you have owned for fewer than 36 months.

Regardless of whether your tax paid equals the amount of the tax credit or is less, you may still get a refund equal to the maximum credit.

Modified adjusted gross income, known as the MAGI, will be used as the main determining factor of whether or not you qualify for the tax credit. For a single person, MAGI of ,000 is the qualifying number. For a married couple it would be 0,000.

There are partial credits available for those with a MAGI above these amounts up to MAGI of ,000 for singles and 0,000 for married couples. Spouses who file separately can each claim the lesser of either ,000 or 5% of the purchase price.

Changing your tax withholdings in 2009 to the amount of the tax credit may help you save for a down-payment if you intend to buy by the end of the year, but be sure of your plans because if things change and you do not buy your home by the close of 2009 the IRS will expect repayment.

There is a special situation for those with a home under construction. Eligibility is determined based on when the home is occupied.

If you close on the home during 2009 and move in before December 31, 2009, you can qualify for the credit, regardless of building starting in 2008.

A home purchased in 2009 may possibly be eligible for a credit on the 2008 tax year.

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