Overview of Mortgages

As part of the Worker, Homeownership, and Business Assistance Act of 2009, first-time homebuyers and current homeowners who are purchasing a new home can take advantage of a new homebuyer tax credit.   
 
First-time homebuyers are able to continue to receive a tax credit up to $8,000 or 10% of their home purchase, whichever is less, through April 30, 2010.  Under the new Act first-time homebuyers purchasing between November 6, 2009 through April 30, 2010 have extended income requirements for up to $125,000 for singles and $225,000 for couples. 
 
The new bill also includes current home buyers purchasing a new home to receive a tax credit up to $6,500 or 10% of their home purchase, whichever is less, through April 30, 2010.  Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.  Eligible home buyers must have owned or resided in a home for at least five consecutive years of the eight prior years and must be purchasing a principal residence.
 
How does it work?  Here's an example:  Say your tax liability for the year is $6000 and you've paid Uncle Sam all he is owed.  If you qualify for the entire $6,500 credit as a current homeowner purchasing a new home, you will get $6,500 as a refund check.   Or, say you are expecting a $1,000 refund from your taxes. You would get $7,500 back from the government (the $6,500 credit plus the $1,000 you overpaid) as a first-time homebuyer.  That makes a nice nest egg to buy new furniture, pay off some bills, or buy some other items you might need in your new place.
 
Applying for the credit is easy.  Just claim it on your tax return.  You can even amend your 2008 tax return to receive the credit.
 
Want to learn more?  Go to www.federalhousingtaxcredit.com or contact your loan officer at ECU Credit Union to learn more about this offer.  Rates won't be this low forever, now is the perfect time to buy!