by Juliana Manderico

Created on: December 21, 2009   Last Updated: December 22, 2009

The “American Recovery and Reinvestment Act of 2009”, is the approved law, that provides the first homebuyer a tax credit of $8,000 and more privileges in acquiring homes. But there are some qualifications to follow to receive this opportunity. Below are the qualifications:

An individual or a couple that have not owned a home for three consecutive years can purchase a new home, condominium or town house within the United States territory. Adjusted gross income should be less than $75,000 if single and $150,000 for married filing income tax jointly. The $8,000 tax credit will not be repaid, as long as they reside at this home. In filing the income tax return, if the deduction is over from the withheld income tax, the excess amount will be refunded to them.

The first time homebuyers have privileges, to select the location they want to acquire a home. They can compare prices for the homes they want to buy and can select the locations they want to acquire. They have a privilege to select real estate agency they can trust. They can discuss and have the rights to know all the fees in acquiring homes, like the loan fees, credit report if lender requires it, appraisal fee and other closing costs; the buyers can negotiate the fees.  First time home buyers have the rights to apply for more grants, if they are qualified. It is their responsibilities to research, for more money for their mortgage.

The tax credit award for first time homebuyer differs in different states. The award might be lower or higher and the income level varies as well, it might be higher or lower. Some real estate agency offer additional award to the first time homebuyers, to increase their benefits. Sometimes, other lenders offer free closing costs to buyers. These are big savings if the fees are absorbed by lenders.

As a reminder, the first time homebuyers should always read the fine print to free themselves for more costs and fees later. Do more research, for best lenders offer on low mortgage’s interest rates. There are lenders that offer fixed and lower interest rates for mortgage loan, now you can even borrow for 3 1/2% interest rates for fixed rate mortgage loans.  As mentioned above, always read the fine print to make sure the safe transactions you have in buying homes.

If you are determined to acquire a home, this is the time to do it; don’t let this opportunity pass by, you have a great privilege and seize it, the “American Recovery and Reinvestment Act of 2009”.

Reference: Search, “The first homebuyer in 2009”  

Learn more about this author, Juliana Manderico.
Click here to send this author comments or questions.