Extended and Expanded Tax Credits

First-time buyers who have not owned a home in the past three years are eligible for up to an $8,000 tax credit.

• Tax credit does not require repayment.
• Credit is available to couples with gross income of less than $225,000 and individuals making less than $125,000.
• Buyers must secure a binding contract by April 30, allowing 60 days to close.

Qualified homeowners who have lived in their current home for at least five of the past eight years are eligible for up to a $6,500 tax credit to buy a home.

• Tax credit does not require repayment.
• Credit is available to couples with gross income of less than $225,000 and individuals making less than $125,000.
• Credit is limited to homes priced $800,000 or less.
• Buyers must secure a binding contract by April 30, allowing 60 days to close.

With historically low interest rates, a great selection of affordable homes on the market, and tax credits for buyers, there has never been a better time to buy! 

Resources:
IRS News Article
NAR FAQ - Homebuyer Tax Credit Changes
NAR Issue Brief - Homebuyer Tax Credit Changes
Response Mortgage   (206) 402-9037

More Programs Available: Making Home Affordable Plan   Washington Programs   Oregon Programs

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Making Home Affordable Plan

On March 4, 2009, President Obama’s Administration announced two new programs to help current homeowners in need. For complete details, visit: Realtor.org .

A brief overview is:

1. The Home Affordable Refinance Program. Under this program, eligible borrowers may refinance loans that Fannie Mae or Freddie Mac (the government sponsored enterprises, or GSEs) own or guarantee. The program can help homeowner-occupants who are current in making loan payments and have loan-to-value ratios (LTVs) above 80 percent but not more than 105 percent. Cash out refinancings are not permitted. The program ends in June 2010.  Learn more at http://makinghomeaffordable.gov/

2. The Home Affordable Modification Program. This is a $75 billion program with lender, servicer, investor, and borrower incentives to make it work. The program is limited to homeowner-occupants who are at risk of default or already in default and who have loans at or below the maximum GSE conforming loan limit of $729,750 (or higher for 2-, 3-, and 4-unit properties). Loan modifications under the program may be made until December 31, 2012. Apply for help at: http://hopenow.com .

• Be a first-time buyer
• Use a 30-year fixed rate conventional mortgage
• Attend a home buyer education seminar
• Meet county-based income limits
• Borrow no more than $417,000

Additionally, HouseKey, also known as the down-payment assistance program allows you to take out a second mortgage, at a guaranteed low interest rate for ten years, to use as a down payment.    In order to be eligible, you must:

• Be a first-time buyer
• Attend a home buyer education seminar
• Meet county-based income limits
• Participate in the Express Program

Participating in these two programs can create an opportunity for you to purchase a house at a low interest rate with zero money down.  However, you must act quickly: Washington State has set aside a finite amount of funding for the Express Program and HouseKey.  These programs will only be available as long as the funding lasts. In addition, not every lender can offer these programs.  Response Mortgage Services is one that does. 

More Information on Home Ownership in Washington

Talk to your trusted John L. Scott advisor to learn more about these programs.