How to Buy a House with New Stimulus Rules

Buying a house with the new Stimulus Bill tax credit is getting easier in a weak economy.

If you have some money and good credit, it may be worth your time to see if you an qualify for a tax credit under the new Stimulus Bill rules. This legislation makes it even easier to qualify than the previous legislation.

Difficulty: Moderately Easy

Instructions

1. Income limits are set.
   
   See if you can qualify by income. Income limits are in place based on your annual income tax returns. Joint filers can get reduced credit for incomes up to $225,000 and individuals can get reduced credit for incomes up to $125,000.

2. Meet first time buyer definition.
   
   Find out if you meet the first-time home buyer definition or the repeat buyer definition for qualification. First-time home buyers are people who have not owned a home in the previous three years. Repeat buyers must own their current home for at least five years.

3. There is a price limit.
   
   Know the price limit. You cannot purchase a home costing more than $800,000 and still qualify for stimulus money.

4. There is a time limit.
   
   Realize the time limit. A purchase agreement must be signed by April 30, 2010, and closing must occur by June 30, 2010. Active military have a longer time limit to purchase a home under the Stimulus Bill.

5. Know that this is a tax credit.
   
   Know how the legislation works. This is a TAX CREDIT equal to ten percent of the purchase price of a primary residence. It is a credit of up to $8000 for first-time home buyers (see definition above) and up to $6500 for repeat buyers.

6. How to claim the credit.
   
   Claim your credit if you meet the requirements. The credit can be claimed on your Federal Tax Return for 2009, or you may amend your 2008 Federal Tax Return. If the credit exceeds your tax liability, the Federal Government will issue a payment.

7. Check the actual legislation.
   
   See Resources below for links to the actual legislation and information from the IRS. The correct name for this Act is Worker, Homeownership, and Business Assistance Act of 2009.

Tips & Warnings

• We often write about government programs and consumer issues. See Resources below for more articles.
• copyright 2009 Linda Richard
• Feel free to link to this article or send it to a friend.
• You will need to provide proof that you are over the age of eighteen and that the home was actually purchased.

Resources

• Read a Credit Contract Financing Agreement
• Get Cash for Appliances under Stimulus Bill
• Qualify for Stimulus Money for Weatherizing or Insulating a Home
• Read a Homeowner's Insurance Policy
• Save Money on Utilities in Winter
• Save Money on Utlitiy Bills in Summer
• Reduce a House Payment without Refinancing
• IRS Information on Housing Credit
• Fact Sheet from the White House

[goodselfme]

on 11/7/2009 TX for the information on buying a new house with the new stimulus rules.

[kristara]

on 11/6/2009 Great tips for buying a new house 5*

[jeni10]

on 11/6/2009 Very informative article on how to buy a house with new stimulus rules. Thanks for sharing your knowledge. 5*

[godfather25]

on 11/5/2009 Great article on buying a house with new stimulus rules.