FIRST-TIME HOMEBUYER TAX CREDIT
2009 American Recovery and Reinvestment Act, Explained As Modified in the American Recovery and Reinvestment Act Provisions Effective For Purchases On or After
January 1, 2009 And Before December 1, 2009
AMOUNT OF CREDIT
Maximum credit issued will be $8,000
ELIGIBLE PROPERTY
Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence.
REFUNDABLE
Yes. Reduces (or, can eliminate) income tax liability for the year of the purchase. Any unused amount of tax credit will be refunded to the homebuyer.
INCOME LIMIT
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 for a joint return).
FIRST TIME HOMEBUYER ONLY?
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years prior to purchase.
REVENUE BOND FINANCING
Purchasers who utilize revenue bond financing can use credit.
REPAYMENT
None, for purchases on after January 1, 2009 and before December 1, 2009.
RECAPTURE
None, unless the home is sold within three years of the purchase. If the home is sold within three years original purchase, the entire amount of credit is recaptured upon sale.
TERMINATION
December 1, 2009
EFFECTIVE DATE
Effective as of January 1, 2009
Loan Limits (applies to Berkeley, Charleston, Dorchester Counties) FHA loan limit: $335,000 Fannie Mae/Freddie Mac loan limit: $417,000
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