December 1st Deadline for the $8,000 qualified first-time home buyer tax credit
April 21, 2009
Source: Frank Mortl, III
Job Title: Chief Executive Officer
Phone: (269) 382-1597
The Greater Kalamazoo Association of REALTORS® (GKAR) announced today a reminder to all potential home buyers and home sellers of the December 1, 2009 deadline to take advantage of the $8,000 qualified first-time home buyer tax credit. The credit, part of the housing stimulus provisions within the American Recovery and Reinvestment Act of 2009, is accounted for within the $787.2 billion stimulus package that was signed into law by President Obama earlier this year.
The new legislation, which represents great news for home buyers across the country, but in particular, the greater Kalamazoo area, removes the requirement that the $8,000 credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1st to December 1, 2009. Homebuyers must have purchased a home after January 1, 2009, and before December 1, 2009, to be eligible for the $8,000 credit.
The bill will also reset the conforming loan limit cap at $729,750, up from $625,500. Numerous home owners in Michigan experienced a marked decrease in their conforming loan and Federal Housing Administration (FHA) limits on January 1st, and the stimulus bill reinstates 2008 loan limits through December 31, 2009.
"The stimulus package should provide the homeownership key that could unlock thousands of dollars of long-term values, equity investments and tax savings for the first-time home buyer," said Nancy Fish, a REALTOR® member of GKAR who owns Park Place Real Estate of Kalamazoo. "With interest rates so low, now is the perfect climate to buy a home in the greater Kalamazoo area for anyone in the market for a new home."
To qualify for this year's first-time homebuyer credit, the homebuyer must not have owned a home in the previous three years and the home must be the primary residence. Unlike last year's credit, if the property remains as the homeowner's primary residence for at least three years, then the payback requirement is waived.
GKAR encourages anyone interested in the purchase of a home to contact a local greater Kalamazoo REALTOR® for more information on homebuying opportunities and the advantages available to both new and trade-up buyers. For more information on the many reasons to consider the purchase of a home in the greater Kalamazoo area, visit www.gkar.com or contact the GKAR office at 269.382.1597.