Yes, a $7,500 Tax Credit, or Interest Free Loan!!
This past July, President Bush signed a bill intended to relieve pressure on the current housing market and help home owners faced with foreclosure. This bill is known as HR 3221 and is over 600 pages! Many consumers don’t have the time to read all the nuances and programs authorized under this legislation though there are some pieces that can affect you. This piece will explain the $7,500 Tax Credit, which is essentially an interest free loan.
Firstly, a first time homebuyer also includes anyone who hasn’t owned a home in 3 years. In cases of married couples, both must qualify. Secondly, the full credit applies to those with an income of less than $75,000 or $150,000 for joint filers. This credit will apply retroactively back to April 8, so keep this in mind of you’ve already purchased your new home this year.
This is not a tax break but a full credit given when you file your taxes. If your expected refund for this coming year is $3,000, the credit will give you $10,500 back in your pocket. The $7,500 credit is paid back over 15 years at $500 a year. By owning a home, your annual mortgage interest deduction is likely significantly greater than that. For specific details on this program, drop us a line at Info@TheShulerGroup.com or contact your mortgage specialist.
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