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 Information
NAR FAQ - Homebuyer Tax Credit Changes
NAR Issue Brief - Homebuyer Tax Credit Changes
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Washington State Programs
In addition to the tax credit, the Washington State Housing Finance Commission has funds available, through the Express Program, to help you buy your first home. The Express Program guarantees a low mortgage interest rate. In order to be eligible, you must: - 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
Oregon State Programs
Check with your state, county, city and other local housing agencies for other first time buyer and down payment assistance programs.
Talk to your trusted John L. Scott advisor to learn more about these programs. Contact Response Mortgage
(206) 402-9037
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