Not Just FIRST-TIME HOMEBUYER TAX CREDIT

CAN I USE THE TAX CREDIT FOR DOWNPAYMENT? \A client recently figured out he could do it faster and cheaper if his grandma would loan him the $8000 (FHA is OK with that) and immediately after closing amend last year's tax return and get the credit refunded, they say within 12-16 weeks. So in 4 months he can pay back grandma. This is what we call a "First National Bank of Grandma" loan and it is acceptable to FHA.

Here is the FAQ page for the Federal Tax Credit

Tax Credit Update!

First Time Home Buyers: Get Paid $8,000 to Buy a Home!
If you are a first-time buyer, you could be eligible for up to a $8,000 Tax Credit. This means
you could keep up to $8,000 of income tax you would have likely paid or receive a larger tax refund.
In order to qualify for this program, you will need to enter into a binding contract to purchase a
home on or before April 30, 2010 and close on the home by June 30, 2010 and it must be your
primary residence.

Top 10 Reasons it is a Great Time for First Time Buyers To Purchase a Home:
1. You are buying a home today that doesn’t have inflated equity
2. You don’t have to wait to sell your home
3. You have sellers willing to pay your closing costs and possibly buy-down already great interest rates
4. You are in the first true “Buyers” Market in nearly 8 years
5. You have the largest selection of homes in 15 years
6. The current downturn in house pricing as well as low interest rates could allow you to buy homes in neighborhoods
that were out of reach two years ago
7. You can purchase a home in specific rural areas for 0 down and no monthly PMI (USDA)-(Note: Must sell current
home to qualify for the USDA program)
8. If you were previously in the military you could use your VA benefits with 0 down and no monthly PMI and could purchase
anywhere
9. You can still buy a home with just 3.5% down through FHA
10. And you could file with the IRS for your (up to) $8,000 Tax Credit!

With rates at an all time low, inventory at an all time high, and an $8,000 tax credit...it’s a
GREAT time to buy a home! Call today to take the first step toward the dream of home ownership!

Repeat or Move Up Buyers: Get Paid $6,500 to Buy a Home!

Repeat or Move-Up Home Buyer Tax Credit: Eligibility Requirements:
• Buyers must have owned and lived in their previous home for five consecutive years out of the
last eight years and purchase a replacement primary home.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit is available for homes purchased after November 6, 2009 and on or before April
30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the
home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $215,000 and married couples with incomes up to
$225,000 qualify for the full tax credit. Applies only to homes priced at $800,000 or less.

Top 5 Reasons it is a Great Time for Repeat and/or Move-Up Buyers To Purchase a Home:
1. You are buying a home today that doesn’t have inflated equity
2. You don’t have to sell your current home to qualify for the Tax Credit (although you would need to qualify for both house payments, if applicable)
3. You have sellers willing to pay your closing costs and possibly buy-down already great interest rates
4. You are in the first true “Buyers” Market in nearly 8 years and have the largest selection of homes in 15 years
5. The current downturn in house pricing as well as low interest rates could allow you to buy homes in neighborhoods that were out of reach two years ago.

With rates at an all time low, inventory at an all time high, and a $6,500 tax credit...it’s a
GREAT time to buy a home! Call today to take the first step!