The extension of the $8000 First-Time Homebuyer Tax Credit and the addition of the $6500 Move-Up Homebuyers Tax Credit makes this a great time to get into a new home. The tax credit of up to $8,000 is for first-time buyers, citizens who have not owned a home for at least 3 years. In addition, homeowners who currently own a home and have lived in their home for at least five years can now claim a Move-Up Homebuyers Tax Credit, a tax credit of up to $6,500 if they relocate. Both of these credits require the homeowner to sign a buy/sell contract by April 30, 2010 and to have closed on their home by June 30, 2010. Here is a link to the Federal Housing Tax Credit website:
As an added incentive, mortgage rates are currently at historic lows (4.75% - 5% for approved borrowers). These mortgage rates are not expected to last for much longer.
The tax credit is for first-time home buyers or move-up buyers. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. A move-up buyer is someone who currently owns a home and has lived in that home for at least five years.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000 or $6,500 depending upon the credit claimed.
The credit is available for homes purchased on or after January 1, 2009 and before April 30, 2010 and the home has to be closed by June 30, 2010.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
Big Sky Builders of Montana Inc. is a member of the Bitterroot Building Industry Association, the Montana Building Industry Association,and the National Association of Home Builders. We are registered with the State of Montana (#145950) and meet or exceed all state Worker's Comp. and insurance requirements.
