Five more months to get in Contract for the Federal Tax Credit for FIRST TIME HOME BUYERS.

Beyond the basics (the definition of a First Time Home Buyer and the fact that you must stay in the home for three years), here are a few of the lesser known talking points:

• There is an increase in Income Limits (and resulting Phase Out Limits) from $75,000 to $125,000 for single filers and from $150,000 to $225,000 for married filers.  That means many more people qualify!
  • That if you close in 2010 before the June 30^th deadline, you can get the credit in your 2009 Returns.  You can even file an extension and not even file until AFTER you have closed, or amend returns that had been filed.  Any of these actions will get you your tax credit cash in a matter of weeks, not in 2011!
  • That if there are multiple home buyers and/or co-signers that may or may not be First Timers, there are options on how the credit can be allocated.  As always, discuss these items with your accountant.
• There is a new REPEAT HOME BUYER TAX CREDIT of up to $6,500.

  Are you aware that you need NOT purchase a more expensive home to qualify?  Just be in contract by April 30, 2010 and close by June 30.  Many of your questions about either Tax Credit can be answered at http://www.federalhousingtaxcredit.com/

  When you combine these likely changes and deadlines with a probably rising interest rate market, I can’t imagine a better time to ACT NOW before rates go up, the need for cash to close goes up, and the tax credit expiration looms.

 Information provided by Dean Hartman