Minneapolis Condo Financing: Tax Credit Update
If you’ve been on the sidelines waiting for the “best” time to purchase that new home, you might want to start NOW to benefit from the Extended Home Buyer Tax Credit that expires April 30, 2010.
The success of the First Time Homebuyers Tax Credit of 2009 in stimulating the housing market brought Congress to pass legislation that will continue to help first time home buyers as well as extend a new tax credit to current homeowners in the market to buy a new home. The Extended Home Buyer Tax Credit can be used on a Minneapolis condo as long as it is your primary residence.
Both programs are good for qualifying homes purchased from November 7, 2009 through April 30, 2010. You need to have a written, binding Purchase Agreement and close on or before June 30, 2010. The limit for eligible home value is $800,000. The income limits for both first time homebuyers and current homeowners is $125,000 for a single person, and $225,000 for a married couple – to receive the maximum tax credit. The credit will decrease for single buyers as their income increases from $125,000 to $145,000, as it will from $225,000 to $245,000 for married couples. Home buyers earning over these maximum qualifying incomes are not eligible for the credit.
The great news is that a First Time Homebuyer can qualify for up to an $8,000 maximum allowable credit depending on the price of the home and the purchaser’s income. To qualify as a First Time Homebuyer, the purchaser and/or spouse must not have owned a residence in the three years prior. A current Homeowner can qualify for up to a $6500 maximum allowable credit depending upon the price of the home and purchaser’s income. The purchaser must have used the home sold or being sold as a principal residence consecutively for 5 out of the 8 previous years.
The “Spring” season in Real Estate is right around the corner – Minneapolis condo sellers will start to “thaw” out and think about putting their homes on the market the end of January into February. If you want to get settled in your new place by May or June – start looking soon!
Prices are great right now and mortgage rates are hovering around 5% - there is still time to lock in a fixed rate before rates go up.
Remember the tax credit expires April 30, 2010!! I’ve helped many home buyers find just the right home - let me know if I can help you! Call me, Amy Haugen, at 612-280-3941 or e-mail email@example.com today.
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