Below is an informative chart that breaks down the major differences from the original $7,500 tax credit and the new $8,000 credit. Also the links below will take you to much more info about the tax credit.
The National Association of Realtors (NAR) Presentation of the 1st Time Home Buyer Tax Credit
If you click on the chart below it will take you to additional information regarding stimulus packages and this tax credit.
This is an exciting time with low home prices, tax credits and fantastic financing options to make your property purchase perfect for your needs. One of the most exciting programs I have come across lately are Renovation Loans– I will be highlighting these programs soon so make sure to check back!
Source: NATIONAL ASSOCIATION of REALTORS® www.realtor.org
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You seem fairly knowledgeable on the 2009 first time home buyers tax credit and renovation loans. I was wondering how those two items work together. The tax credit is worded such that is seems like the home purchase price is what is eligible for the 10% credit. My question is if I bought a home that was listed at 50k and got a renovation loan for 80k to make improvements and purchase the home, would my tax credit be 5k or 8k?
Hi Joel-
Excellent question! I called and spoke with my accountant as well as some lenders I know just to make sure I was offering the correct response. As you mentioned most of the information surrounding this credit points towards your “purchasing price” this is also true on all of the tax filing documents surrounding the credit. So it looks like in this scenario you would be claiming the $50,000 purchase.
Thanks so much for stopping by! Please feel free to ask more questions!
Dan
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