Homebuyer Tax Credit

 

The government recently passed an incentive credit for people buying homes that have not had an ownership interest in a property for the past 3 years.  You don’t necessarily have to be a first time home buyer.  The way this works is that the year after you purchase your home, you will receive up to $7500 as a tax credit when filing your taxes.  This can result in a refund to you.  If you receive the full $7500 you will then start to repay the money at $500 increments for the next 15 years.  This is essentially an interest free loan from the government.  A lot of home buyers wonder how they will pay for improvements to the home.  This may be a great way to make some of those upgrades that you don’t have the money to initially do.  You can do whatever you want to with that money though.  You could put in the bank or invest it in some other account. 

 

In a new market when there are very few 0% down programs left, this may be a way repay yourself for the initial down payment requirement, or simply afford yourself a little cushion in the unique market.   

 

For more information or any questions, contact

 

Matt Smith – Countrywide Financial – 616-299-2951