Tyra General
Phone:
2407375000
Mobile:
2402819219
Toll Free:
18667962766
Fax:
2402965166

Email


Office:
Upper Marlboro
9701 Apollo Dr., Ste. 102
Upper Marlboro, MD 20774

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The bill essentially remains intact but has a handful of important changes:

 

  Previous Provisions

 

 New Provisions
Effective Date January 1, 2009 November 7, 2009
Deadline Close before December 1, 2009
  • Contract signed before May 1, 2010, must close before July 1, 2010
  • Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
Amount
  • First-Timers: maximum of $8,000 or 10% of sales price
  • Prior Owners: $0
  • First-Timers: Unchanged
  • Prior Owners: $6,500 if lived in prior home for at least 5 consecutive years of past 8 years
Income Limit
  • Individual: $75,000
  • Couple: $150,000
  • Individual: $125,000
  • Couple: $225,000
Other Restrictions Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full $8,000.
  • Buyer must be at least 18 years old and not classified as a dependent for tax purposes
  • Home must cost less than $800,000
  • Home must be primary residence for at least 3 years. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
How to claim If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return

 

Earlier this year, KW Research conducted a study of first time-buyers and here’s a few of the findings:

  1. The median age was 28, significantly down from where it was four years ago at 32.
  2. Location or Neighborhood was the No. 1 “must-have” for 36% of buyers.
  3. 25% saw 5 or less homes before writing an offer, the average buyer saw 10 homes.  
  4. 2 out of 5 first-time buyers purchased a distressed property.
  5. 2 out of 3 sellers paid at least part of the buyer’s closing costs.
  6. 1 in 4 had help from their family for the down payment.

If you’re interested in learning more about the new tax credit or about homes in your area, contact us soon.