Kitsap County 1st Time Buyers :: $7500 TAX CREDIT :: Bremerton, Silverdale, Naval Base Kitsap
August 31, 2008 by Jo Soss-Olson
Filed under 5) Bremerton, 6) Silverdale, 7) Blog
Are you sitting on the fence? Have you read the many horror stories across the nation? Well, remember real estate is local and here in the Kitsap County area we are in an amazing buyer’s market. It just might be the perfect time for you to purchase a home if you are a First-Time Home Buyer. Here is a nudge to get you into the housing market. On July 30th President Bush signed into law House Bill 3221 (H.R. 3221: Housing and Economic Recovery Act of 2008) which included a special tax incentive for First-Time Home Buyers (Sec.3001). This bill provides a tax credit up to $7,500 for homes purchased on or after April 9, 2008, which the First-Time Home Buyer will repay over 15 years following the purchase. This is not a down-payment assistance program, but rather a ZERO INTEREST LOAN that has some amazing features.
- The tax credit is available for first-time home buyers only. Purchaser (and spouse) may not have owned a principal residence in the previous 3 years.
- The maximum credit amount is ten percent of the cost of the home and can not exceed $7,500.
- Property eligible is any single-family residence that will be a principal residence.
- The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.
- There are income limits. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- The tax credit works like an interest-free loan and must be repaid over a 15-year period. Each year 6.67% of the credit to be repaid – if you received the full credit that is only $500.25!. If sold before 15 years than remainder of credit is paid at time of sale.
If this sounds interesting to you why not give me a call so we can discuss it in more detail and I can get you in touch with one of my local lenders. I do not want you to think I am an expert in this area but I do have a network of mortgage lenders that are. You might also want to discuss this with your CPA. I am not allowed to practice law or give tax advice.
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