Nashville Home Loan:$7500 TAX CREDIT FOR YOUR NEW NASHVILLE, TENNESSEE HOME PURCHASE

December 20, 2008 · Print This Article

If you are buying a new in home in Nashville or anywhere throughout Tennessee, I wanted to bring to your attention a unique opportunity that exists right now for first time homebuyers. There is now a tax credit available up to $7,500!

The first-time homebuyer tax credit is part of the Housing and Economic Recovery Act signed into law by President Bush on July 30. The tax credit is available for home purchases made between April 9, 2008, and June 30, 2009.

A few details about the legislation and tax credit:

- New Homebuyers have the choice of either taking the money as a lump sum as part of their 2008 or 2009 tax refund, or they can immediately adjust their withholdings so they can take home additional money in each paycheck (which could be saved to put towards a down payment);- The tax credit can reduce their tax liability at the end of the year;

- The tax credit essentially provides a discount on the home purchase price. For example, a buyer purchasing a home for $200,000 will in fact only be paying $192,250 once this tax credit is applied;

- And finally, it makes it possible for more people to increase their net worth by becoming homebuyers.

The credit is only available to buyers who haven’t owned a home in the last three years, or who have never made a home purchase at all. Buyers with an income of up to $75,000 are eligible for the full credit, and the incentive phases down for those earning more, up to $95,000, at which point the person is no longer eligible for the tax credit.

The tax credit incentive can be viewed as a refundable credit because it must be paid back over a 15-year period in equal sums; however, there are no interest charges on the outstanding balance.

As with any tax related matter, we recommend you consult your tax attorney prior to taking action, but this new credit has certainly created some new opportunity for what was already considered a “buyers” market. Give me a call and we can discuss how you can leverage this new program and obtain the financing you need for your new home.

Written by Terrence Askew