New Tax Credit Guidelines for New Home Purchases

The President is expected to sign The American Recovery and Reinvestment Act of 2009 today in Colorado.  The legislation will be immediately effective and the following amendments relate to our first-time homebuyer programs (First Home Mortgage Program and Mortgage Credit Certificate Program):

 1) Increases the maximum credit from $7,500 to $8,000

 2)  Extends the application of this credit to homes purchased before December 1, 2009 instead of the existing provision that would sunset July 1, 2009;

 3) Eliminates the recapture provision, provided that (a) the home is purchased in 2009, and (b) the homebuyer does not dispose of the home or otherwise discontinue its use as the homebuyer’s principal residence within 36 months of the acquisition of the home by the homebuyer; and

Making Decisions on a New Home Purchase?

4) Allows the credit to be combined with the mortgage that is financed with the proceeds of a tax-exempt qualified mortgage bond and the credit may be combined with a mortgage credit certificate.

 Effective date:  Residences purchased after December 31, 2008.

 Thanks to Chris Hopkins for this Great Information! 

Hopkins / Shue Team

Chris Hopkins

704-902-5586 (c) 800-581-8015 (o)

Dale Shue

704-400-8599 (c) 704-971-6181 (o)