This article is part of "The Patrick AFB Online Relocation Package".
Wow!!! For those of you PCSing to Patrick AFB in 2009 there is a huge benefit that just got passed in the stimulus bill: $8000. The fully refundable, $8000 (or 10% of the purchase price, up to $8000) is a tax credit for first time homebuyers that purchase a home between January 1, 2009 and November 30, 2009.
Update: This program has been extended until April 30th 2010.
Here are the details:
What is a first time homebuyer?
Someone who has not owned a principle residence in the past three years. So many of you coming from overseas who have owned a home in the past, but have been living on base for three years will still qualify.
Are there income limits?
Yes, $75,000 for singles and $150,000 for couples.
Will I have to pay this back when I sell the home?
If you stay in the home for three years you do not have to pay it back, anything less and you will have to pay it back. So this is a gift, a grant, free money. Well not exactly free the taxpayers are paying for it.
Here are some typical scenarios:
1. At the end of the year you typically owe $7000 in taxes, and from your withholding they have taken $7000. When you file your 2009 taxes, you will get a check for $8000, which you can use for whatever you want: furniture, clothes, vacation, etc.
2. At the end of the year you owe $7000 in taxes. From your withholding they collected $8000. In this scenario you would usually get $1000 refund check. With this tax credit you will get a refund of $9000.
3. You owe $7000 in taxes. They withhold $6000. In this scenario you would normally have to pay $1000. With the tax credit you will get a refund of $7000 ($8000-$1000).
This money can not be used for a down payment, but will be refunded from your taxes. All you need to do to get this credit is claim it on your 2009 tax return.
With interest rates hovering around 5% (at the time of writing this), prices falling into affordable ranges, and this generous tax credit, this just might be the time to buy a home.
John S Murphy is a full-time REALTOR® with RE/MAX Elite in Melbourne, FL, and the creator of AmericanAirmanHomes.com, a website that specializes in Military PCS, DoD, civilian, and retired military relocations to and from the Patrick AFB area in Florida. Please feel free to visit the website where you can search the entire Brevard County MLS.
John S Murphy is a full-time REALTOR® with RE/MAX Elite in Melbourne, FL. He is also the creator of www.AmericanAirmanhomes.com, a website that specializes in PCS, DOD, and Civilian relocations to Patrick Air Force Base, FL. --- Doing a home search? Visit his website and search the entire Brevard County MLS.
John S Murphy
Certified Distressed Property Expert