There’s more information in our “
Learn the Facts” section on mortgages and mortgage trends, but for first time buyers a great place to start is the Washington State Housing Finance Commission. The Commission is self-supporting state agency that has a number of free resources for first-time buyers, including homebuyer education seminars, information, loan programs, and a list of lenders who are familiar with the needs of buyers like you.
There’s a new, limited tax credit for first time homebuyers! Feb. 17, President Obama signed the American Recovery and Reinvestment Act of 2009 into law. As part of the $787 billion in economic stimulus package, the legislation created a home buyer tax credit that is bigger and better than the previous credit that was implemented in July 2008. In a nutshell, it:
- Provides a tax credit equal to 10 percent of the sale price of the home, up to an $8,000 maximum. Is a true tax credit. It does not need to be repaid, unless the home owner sells the home within three years of the purchase.
- Can only be used with the purchase of a home that will be the buyer’s principal residence. It cannot be claimed for the purchase of a vacation home or property to be used as a rental.
- Available to first-time home buyers only. A first-time home buyer is defined as someone who has not owned a principal residence for three years or more.
- Applies to homes purchased by qualified buyers between Jan. 1 and Nov. 30, 2009. The purchase date is the date when closing occurs and the title transfers.
The website
www.FederalHousingTaxCredit.com explains in detail the provisions of the new tax credit.
Keep in mind that this opportunity won’t be around forever. You have to buy your home on or before November 30, 2009.