The $8,000 Credit As Down Payment

Just to let you guys know, the FHA is now allowing a bridged loan on the $8,000 Credit for First-Time Homebuyers to be used towards the down payment. However, you will still be required to have 3.5% down from other sources and cannot rely on the $8,000 to make that 3.5%.Here’s a run down of the $8,000 Credit:Amount: The tax credit is worth 10 percent of the home purchase price, up to a maximum of $8,000.Timing: To qualify, you have to complete your home purchase by December 1, 2009. web design essex . You can claim the credit on your 2009 tax return, or you can amend your 2008 return and get your money sooner. You cannot amend your 2008 return for an expected home purchase; the deal has to be done before you appeal to the IRS.Income: The credit begins to phase out at a modified adjusted gross income (MAGI) of $75,000 for single filers, and $150,000 for joint filers. It disappears completely at MAGI levels of $95,000 for single filers and $170,000 for joint filers.Refunds: The first-time homebuyer tax credit is fully refundable; if the credit exceeds your tax liability, you will get a check for the difference.Definitions: In this case, “first-time homebuyer” means that you haven’t owned a home for at least three years. Also, the home you purchase this year must be your primary residence; you cannot claim the credit on a vacation or investment home purchase.Special circumstances: You can even take the credit if you’re building your first home. The only difference would be that the deadline of December 1, 2009 applies to the date you move in, rather than the date of closing.Repayment: Repayment is not required, unless you move out of the residence within 36 months. You don’t have to sell the property to trigger the repayment requirement either; you just have to cease using it as your primary residence. If this happens, you have to repay the credit in full when you file your tax return for the year during which you moved out of the home.(source www.mortgageloan.com)You can read more about the use of the $8,000 credit from www.reuters.com

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