$8,000 Home Buyer Tax Credit

Well, the President is starting out on the right foot with the $8,000 tax credit for first time home buyers. I've been getting a lot of questions about it and I gave him a buzz to get the inside scoop, but he hasn't called me back yet. I'm not holding my breath, so in the mean time I'll tell you what I know and how it will benefit you...

1. The tax credit applies to homes purchased between January 1, 2009 through December 1, 2009.
2. The tax credit is 10% of the purchase price of the home up to a maximum of $8,000.
3. For single taxpayers you can get the credit up to $75,000 of income; for couples the income limit is $150,000. Over those amounts and it phases out.
4. First time home buyers are eligible, as well as those who have not owned a home in the last three years.
5. The home you purchase must be your principal residence.
6. And the big biggy...the credit does not have to be repaid.

The 101 explanation of the plan is if you buy a home this year and you owe $20,000 in taxes, just deduct $8,000 from it and you now owe $12,000 in taxes. That ain't too bad. And, unlike the Dubya plan a few years ago, you don't have to pay the $8,000 back (which never made sense to me). That ain't too bad either.

So, here's what we have...low interest rates, low housing values and an $8,000 gift! Is there anything else to ask for? Well, of course there is, but don't be greedy! There's even talk that in certain parts of the country it's becoming cheaper to own than to rent. I don't think that applies to Joisey or New York, but you know what I mean. The time may be ripe to purchase a home...and I'm not saying that because I'm in the mortgage business. Many people are waiting for the market to bottom out before seizing the opportunity. I hope it has bottomed out, because if I lose any more equity in my home I'm going to choke somebody (maybe one of those AIG execs who won't give his bonus back!).

The real deal nowadays is to make sure you have the income to handle the home. It's all about debt to income ratio. If you can't afford a home it doesn't matter if the economic factors are in your favor or not...it just ain't happenin'.

On another note I have disbanded my website temporarily and I'm working on a MySpace page. I'll keep you abreast of the situation.

And, if you still aren't on FaceBook, shame on you. If you are, look me up.

Of course, feel free to buzz me at any time at 973-919-8065 for any help.