What you should know regarding the first-time homebuyer credit that has been extended until April 30, 2010 with closing by June 30, 2010.

• It's equal to 10% of the  cost of the home, up to  a maxium credit of $8,000.00. But homes over $800,000 are ineligible for any credit.

• A first-time homebuyer is defined as someone who has not owned a home in the past 3 years. For married joint filers, both must meet the first-time homebuyer criteria to take the credit on a joint return.

• Existing homeowners who have lived in their home for five consecutive  years out of the past eight years are eligible for a $6500.00 tax credit when they purchase a new home.

• This is a tax credit which is better than a tax deduction, it's subtracted directly from your tax liability. If the credit is more than your tax liability for that year, you will receive a refund check for the balance. (Note that married buyer filing separately is only eligible for up to a $4,000 credit.)  

• Eligible properties include anything that will be used for as a primary single-family residence including condos or townhouses.

• Contact me today to find out about the VHDA program for Virginia residents that will allow you to use the tax credit as part of your down payment.

• There are income guidelines for this program. Please contact me for the details on this.

Don't hesitate---take advantage of this program before it's too late. Contact Helen@HelenChapman.net  today!

The following articles provide useful information and are a great place to start if you're considering buying a home.