It’s a great time to buy a Minneapolis house. I know, I’ve said this several times before, but I really want to emphasize the point. Interest rates are at an all-time low, and even better, the government wants to help first-time home buyers with a tax credit. Here’s the deal.
If you have bought a new home on or after April 9, 2008, or are thinking of buying a new one, you have until July 1, 2009 to make your purchase if you want to qualify for the tax credit. A first-time homebuyer is defined as someone who has not purchased a primary residential home in the past three years. If you are married and are applying for the tax credit, then the ownership histories of both spouses are taken into account.
You apply for the credit when you file your taxes, and the maximum credit for an individual is $7,500–$15,000 for a couple. First, the money pays off your taxes, then you get, in hand, the remainder of the money. Most people pay off their taxes, so if that’s you, you get the full amount.
You get the money in hand now, but it will have to be repaid to the government over a period of years. Yes, it acts like a 0% interest-loan, but it’s a tax credit because it’s affixed to your taxes. In a nutshell, you get 10% of the purchase price with a cap at $7,500 for individuals and $15,000 for married couples.
This is just the bare-bones basics. If you have questions or want to read more in depth, visit the website, http://www.federalhousingtaxcredit.com, for a more comprehensive view of the program. Take a look and see if it’s time to buy your first home!