This was an email sent to me by one my mortgage lenders at RWF Wells Fargo Mortgage. Ken's contact info is below.
On Wednesday the Senate passed an amendment that will include a $15,000 home purchasing tax credit in the American Recovery & Reinvestment Act of 2009 for anyone buying a primary residence within the one year period from the time this bill is passed.
It is important to note that this bill has not passed yet but many potential buyers are asking questions in regards to this tax break. I've included some links that divulge the details of the home buyer tax credit amendment. Here are some of the basics:
1. The tax credit is the lesser of 10% of the home price or $15,000 and can be spread equally over 2 tax years.
2. The housing tax credit can be used for purchases of primary residences only…no investment properties or second homes.
3. The home purchase can be an existing home, a newly constructed home, or a bank foreclosure home…but the purchase must be completed within 1 year of the passage of the American Recovery and Reinvestment Tax Act of 2009.
4. The home buyer does NOT have to be a “first time home buyer” to qualify for this housing tax credit, unlike housing stimulus based tax credits from last year.
5. This 2009 housing tax credit does NOT have to be repaid to the government unlike the $7,500 first time home buyer tax credit from last year UNLESS you cease to make it your primary residence within the first 24 months (i.e.. sell within 2 years).
This is great news for home buyers; if it passes.
Please let me know if you or your clients have any questions.
Kenneth B. Dickerson
RWF Mortgage, LLC An Affiliate Of Wells Fargo Home Mortgage MAC M3241-011
2663 N Halsted Street Chicago, IL 60614