Arizona Real Estate Notebook

Below is an email I received from Robyn Robertson of Suburban Mortgage.

The Housing and Economic Recovery Act of 2008 has a tax credit provision which is designed to help first time home buyers purchase their first home. With low interest rates and declining house prices this is a wonderful opportunity to buy a home.

Here are some key things to know about the tax credit

1. First time home buyers will not have owned a home in the last 3 years
2. The income limitations are $75,000 for single taxpayers and $150,000 for married taxpayers.
3. You cannot purchase a home from someone is related to you like spouse, or direct ancestor but purchasing from a sibling, nephews and nieces is okay
4. If you are married both spouses must be first time home buyers
5. If more than one of the unmarried individuals buying a house is a first time home buyer the tax credit will be split up between qualifying individuals.

For homes purchased between April 9, 2008 and December 31, 2008, the credit is 10% of the purchase price and not to exceed $7,500. The tax credit works like an interest free loan and must be paid back over 15 years.

For home purchased between January 1st and December 1 ,2009, the credit is 10% of the purchase price and not to exceed $8000. The tax credit need not be repaid if you live in the house as your primary residence for 3 years without selling it. The tax credit is a dollar for dollar reduction in income on your taxes.

Please be sure to consult with your tax accountant for more specific details.

Robyn Robertson
Suburban Mortgage Inc.
Phone 480 355 8106