There has been a lot of interpretation and paraphrasing on the new Tax Credit. Below, for your information, is the mortgage bankers take.
A couple points of interest:
- Iit is NOT a loan, and cannot be used for down payment money.
- It DOES have a limit, based on the sales price of the property. Typically (but not always), in this area the maximum will be available.
- It DOES have an income limit for full availability. Limits on both single and married buyers. It does phase out the more your earn.
- It CAN be accelerated for use in 2008, or 2009 taxes.
- There IS a “first time homebuyer” requirement, defined as 72 months (3 full years) of non-home ownership.
- There ARE stipulations on the future use and sale of the home.
Overall, this is a tremendous benefit to first-time buyers, and just one of MANY reasons to that 2009 can be a banner year for first-time home purchasers!
(Commentary provided by Carl Mazzan with Choice Mortgage – an Affiliate of Wells Fargo Home Mortgage.)