Buy a House in 2009 and Get $8,000…That you don’t have to pay back.

by Marguerite

Homebuyers, Rejoice.  Buying a house in 2009 just got even easier.

The President signed the American Recovery and Reinvestment Act of 2009 this week.  The bill is a $780 billion package, with about 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.

The major part that agents have been watching for, (especially agents like me- 80% of my clients are buyers) is the tax credit.  Previously, there was a credit of $7500 that had to be paid back. Not anymore!

– The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.      Source: Realtor.com

This is very exciting.  I have a client right now who just bought a 3 bedroom, 1 bath house for $120,000.  The seller (a bank) is paying his closing costs.  His downpayment is $3,600.  His house payment will be $897.00/month including taxes, insurance, and everything else.  When he receives his tax return this year, he will be getting an extra $8,000 back that he will NOT have to repay.  Thats enough for him to pay his mortgage for almost 9 months, or make some improvements to his house, or….put 6 months expenses in the bank like Suze Orman tells us all we should!

Got a quick question? I won’t stalk you. Text me at 253-820-3784

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