One of our four preferred lenders wrote up a great summary to answer questions about the First-Time Home Buyer Tax Credit so we thought we would pass this along…

First-Time Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 was signed into law by President Obama, on February 17, 2009 right here in Denver.

The Act authorizes a Tax Credit of up to $8,000 for qualified First-Time Home Buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The Tax Credit is “refundable”, meaning that the Tax Credit can be used to offset Income Tax that is owed, and may even result in a refund to the buyer. Also, the Tax Credit does not have to be re-paid. To claim the First-Time Home Buyer Credit, the purchase transaction must close by November 30, 2009.

The Tax Credit is equal to 10% of the purchase price of the home, up to a maximum of $8000.

The income limits are: $75,000 Modified Adjusted Gross Income (MAGI) for Single Filers and $150,000 MAGI for Joint Filers. The tax credit is gradually phased out for Single Filers up to $90,000 MAGI and Joint Filers up to $170,000 AGI.

A First Time Home Buyer is a buyer that has never owned a primary residence, or has not owned a residence in the past 3 years (i.e. owned a home in the past, but has rented for 3 years).

For more information on the First-Time Home Buyer Tax Credit, contact a

Mortgage Professional at Megastar Financial Corp. They can show you how you can use the Tax Credit to your advantage to make your dream of living at the Spire a reality.

www.megastarfinancial.com or 303-321-8800

Remember, the program is only available until December 1, 2009.