Frequently Asked Questions
What are the homebuyer tax credit amounts?
- First-Time Homebuyer Tax Credit is $8,000 or 10% of the home purchase price; whichever amount is less.
- Repeat Homebuyer Tax Credit is $6,500 or 10% of the home purchase price; whichever amount is less.
Who qualifies for the credits?
- First-Time Homebuyers must not have owned a home within 36 months prior to the closing date of the qualifying home purchase.
- Repeat Homebuyers must have occupied their current primary residence consecutively for 5 of the previous 8 years prior to the closing date of the qualifying home purchase.
To qualify for either tax credit, homebuyers must meet all of the following qualifications:
- Purchasing single-family homes, condos or townhomes;
- Will occupy the home as their primary residence;
- Filing individually with income of $125,000 or less or filing jointly with income of $225,000 or less.
- Tax credit may be awarded only to homes purchased for $800,000 or less.
Do I have to sell my current residence to qualify for the $6,500 Repeat Homebuyer Tax Credit?
No, but you must occupy the home you purchase as your primary residence for at least three years.
What are the deadlines for the tax credits?
- Start Date: both tax credits apply to home purchases occurring after November 6, 2009.
- Contract Date: both tax credits apply to contracts signed by April 30, 2010.
- Close Date: both tax credits apply to home purchases closed before June 30, 2010.
Do I have to repay the credits?
No, the tax credit is not repaid unless the home ceases to be your primary residence within the 36-month period beginning on the purchase date.
Leaman Team wants to make sure your questions are answered. Please call Leaman Team today to discuss your home financing: (512) 710-1400 or email LeamanTeam@LoanPeople.com.