Obama’s Stimulus Package Helps First Time Homeowners – $8,000 in Tax Credits to Those Who Qualify!

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

It may now be easier than ever to reach your dream of becoming a homeowner thanks to a provision within President Obama’s Stimulus Package for First Time Homeowners. This provision provides for a tax credit for first time homebuyers. There are many new and exciting changes to this 2009 tax credit over the 2008 version making it a much more profitable and realistic venture.

The Homebuyer Tax Credit provides an ,000 tax credit to all qualified first-time homebuyers. A first time homebuyer is defined as a person who has not purchased a home in the last 3 years (for married couples this includes both spouses). One of the great aspects of the tax credit is that it never has to be repaid. This tax credit will be applied to your tax return and will reduce any taxes that you owe. If your tax liability is less than ,000, then you will receive a check for the difference.

This tax credit is available only for homes purchased between January 1, 2009 and December 1, 2009. It applies to any single-family home purchase (including condos, town homes, co-ops, etc). The property much be used as the persons primary residence. The tax credit is not available on vacation homes, rental or investment properties.

Finally, the purchaser must also live in the residence for a minimum of 3 years before selling. If the home is sold before the minimum 3 years, then the entire amount of the tax credit will be repaid out of the proceeds from the sale.

So, if you are looking to buy your first house you better hurry because the deadline of December 1, 2009 is approaching fast. And who couldn’t use an extra ,000 in their pocket?

Obama’s Vision to Help out First Time Home Buyers – Obama’s Stimulus Package

24. December 2010 · Write a comment · Categories: General Tax · Tags: , , , , , , , ,

In various steps taken by the President Obama and his government to bring the economy out of dark clouds of recession, one is the stimulus package for first time homeowners. The economic down turn of 2008 has affected everyone in some way or the other. It was seen that people who were affected the most by this downturn were those who were paying very high interest rate for home loans. Due to these soaring interest rates and mortgage bills many were reluctant in buying a home or were delaying their plans to purchase.

There are various specifications for a person to be eligible for the stimulus package-

? Only houses purchased between dates 1st January ’09 to 1st December ’09 are considered.

? By first time home owner government means, those who have not owned or purchased a house 3 years prior to this purchase.

? Also the person must accommodate in the house for there after the purchase.

? To qualify for the stimulus package the modified gross income of the person should be less than $ 95,000 (p.a.)

? For married couple the limit is up to $ 170,000(p.a.)

The benefits of this stimulus program can be categorised as:

? Tax benefits

? Lower interest rates

? Down payment help

A 10 % tax credit on gross purchase price is allowed to the eligible person. There is also an option of taking the benefit in the year of purchase or within a span of two year after final sale.

Down payment is also approximately 10% of the purchase price. The person can get assistance from the stimulus package by reduction in the down payment required to secure loan.

To encourage people to buy homes some additional benefits are incorporated in the package like tax rebates. These rebates are given on the interest amount attached with the loan.

President Barack Obama knows it very well the most important to the health of any nation is economic expansion. Being a global economy every country’s economic health has an effect on the others as well. There cannot be any economic growth without infrastructure development. Therefore Obama aims to promote and entice people for home ownership. Obviously this initiative on the part of government has made purchasing a home much easier and affordable. Thus stimulus package not only benefits the real estate sector but the whole economy.

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Barack Obama’s First Time Home Buyer Stimulus Package

13. December 2010 · Write a comment · Categories: General Tax · Tags: , , , , , , ,

The economic crisis makes owning a house almost impossible. There is however, hope with the government’s program for those who want to have a house. It’s the First Time Home Buyer Stimulus Package.

This program keeps the dream of owning a home alive for many Americans. If the First Time Home Buyer Stimulus Package becomes successful, it will dramatically reduce the number of unsold homes in the United States, revive the construction businesses and offer employment opportunities.

This package is comprised of three elements – tax credits, lower interest rates and down payment funding.

The government spurred this program to increase home ownership and help the dying real estate industry at the start of the recession in 2008.

A 10% Tax Credit is for those homeowners who purchased a home between January 1 and December 31, 2009. The credit may be as much as ,000 depending on the price of the house. Within two years of purchase, the tax credit may already be claimed.

Down payment meanwhile, is usually only 10% of the selling price. This gives the homeowners the chance to spend for home improvement or other expenditures. The loan requirements are also not as strict with lower monthly mortgage. This program is for individuals with up to ,000 earnings or couples with up to 0,000.

Another part of this stimulus package is the tax rebate on the loan’s interest. Owners can make use of this rebate for expenses that are included in their property maintenance hence, also an income tax deduction.

The government is optimistic that this program will help the economy and the people to have their own homes.

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Federal Government’s Incentive Program to First Time Home Buyers – Obama’s Stimulus Package

24. November 2010 · Write a comment · Categories: General Tax · Tags: , , , , , , , , , ,

While many believe that over-extended first time home buyers played a large role in creating the current economic crisis, the Federal Government nonetheless is trying to woo even more new home buyers with their current stimulus package. Afraid you can’t afford to buy a house? Worried you won’t qualify for a loan? Never fear ? the government will come to your rescue with its ‘First Time Home Buyer Stimulus Package,’ which is being targeted to both first time buyers and those who have not owned a home for at least three years.

Owning your own home remains the American dream. That’s the philosophy behind this program, which includes both pre-owned and newly constructed homes. If successful, it could reduce the current inventory of unsold homes, replenish construction industry coffers and put some unemployed builders back to work. There are three components of the program:

1. Tax credits

2. Down payments funding

3. Lower interest rates

The first stimulus programs were instituted in 2008 at the beginning of the economic downturn. As these programs were found to be insufficient, the government unveiled additional incentives to spur home ownership. The goal was to reinvigorate the real-estate market at a time when people must overcome their fear of spending and of home foreclosure.

A 10% tax credit is available to those who purchase a home between January 1, 2009 and December 31, 2009. Depending on purchase price, this credit may be up to 00. The credit must be claimed within two years of buying the home. The tax credit might be used to offset the property taxes and to recover some of the downpayment, which is often a barrier to home ownership.

Speaking of down payments, the second incentive introduces the possibility of having to raise a smaller sum. A typical down payment amount is 10% of the sales price — ,000 on a 0,000 house. If you don’t need to put down so much, the government hopes you’ll spend that savings on home improvements or other investments. They might also offer you a loan with lower points, resulting in lower closing costs or a lower monthly mortgage. This program is restricted to individuals earning up to ,000, or couples earning up to 0,000.

A final alternative being offered is a tax rebate on the loan’s interest. This is different from a tax credit. Investment property owners are also eligible to take advantage of the tax rebate for expenses that are considered part of the property’s maintenance and therefore an income tax deduction.

The government foresees many positive benefits from the First Time Home Buyer Stimulus programs. Beyond helping people to become homeowners, it is viewed as a way to revitalize the economy, and keep our head up in the eyes of the world.

Stimulus Package First Time Homebuyer Tax Credit

03. March 2010 · Write a comment · Categories: General Tax · Tags: , , , , ,

The first time homebuyer tax credit is in full swing. President Obama has announced the stimulus package that is worth 787 billion dollars. This is great news because if you are first time homebuyer, you will have access to free money to purchase a home.

This opportunity will end in December 2009 and President Obama, like others, believe that the stimulus bill will help the US people clear their debt levels and lead a life with less hassle.

This is an exciting time to purchase a home since home prices have fallen back to 2001 price levels. The stimulus package has allotted up to 8 billion dollars for this program.

There are other key points to remember about the stimulus package: There are some other eligibility requirements that need to be met as well. This program is only available to first time home buyers.

Secondly, keep in mind that this program is not a mortgage loan. The money given to you does not have to be repaid. Please note that if you sell the home within three years of your purchase however, the 8,000 dollar tax credit must be repaid.

Keep in mind that this program is only for primary residence purchases and this program is only available between now and December 1, 2009. If you have been looking to purchase a home, now is the perfect time to buy if you if fit these guidelines.

There are plenty of homes on the market to choose from. Your income will determine whether or not you qualify. If you make at least 75,00 dollars or if you and your spouse make more than 150,000, you are not eligible. Also, a married couple with a joint income of 150,000 dollars or more will not qualify for this tax credit.

Here is a brief overview of how the first time homebuyer tax credit works:

* The tax credit applies to purchases that close between now and prior to December 31, 2009.

* The stimulus package program applies only to those homes that are used as a taxpayer’s principal residence.

* This stimulus program will reduce a taxpayer’s tax bill or increase his or her refund.

* The program is fully refundable which means the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

* Only the purchase of a main home located in the United States will qualify for this program valid until December 2009.

*Vacation homes as well as rental properties are not eligible for this tax credit incentive.

*Taxpayers who owned a home during any time during the three years prior to the purchase are not qualified to take advantage of this program. This means that first-time homebuyers and those who have not owned a home in the past three years prior to a purchase are eligible for the tax credit.

For an eligible purchase in 2009, you are allowed to choose the credit on either your 2008 (or amended 2008 return) or 2009 federal tax return.

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