First Time Home Buyer Tax Credit

Homebuyer Tax Credit Extended For more information, please contact: Stephanie Walgrave 612-419-9429 or Stephanie@walgrave.com When is the new deadline? • April 30, 2010 • If a written, binding contract to purchase a home is in eff ect on April 30, 2010, the qualifi ed buyer will have until June 30, 2010 to close What is the maximum allowable credit available to a qualifi ed buyer? • $8,000 for a fi rst-time homebuyer ($4,000 married, fi ling separately) • $6,500 for a current homeowner ($3,250 married, fi ling separately) Who qualifi es for the extended credit? • First-time homebuyers who purchase homes between November 7, 2009, and April 30, 2010; homebuyer and spouse must not have owned a principal residence for three years prior to home purchase • Current homeowners who buy homes between November 7, 2009, and April 30, 2010, and have used the home being sold or vacated as a principal residence for fi ve consecutive years of the previous eight years • In addition to previously-required documentation, buyers must also include documentation of purchase with tax returns to secure the credit What are the income limits for the newly-extended credit? • $125,000 for single buyers and $225,000 for married couples (additional $20,000 phase-out allows for partial tax credit) • Homebuyers who earn more than the maximum qualifying income ($145,000 for singles, $245,000 for married couples fi ling jointly) are not eligible for the credit What is the maximum home purchase price? • Th e maximum home purchase price is $800,000 Will the extended credit need to be repaid? • Th e credit does not have to be repaid as long as the buyer occupies the purchased home as his or her principal residence for more than three years • If the home is sold within three years of purchase, the full credit amount must be repaid Not a commitment to lend. Borrower must meet qualifi cation criteria. Offi ce: 952-226-7777 stephanie@walgrave.com