AEM Mortgage Minute with Deanna Daughhetee

Secure your Move-Up Tax Credit

Friday, February 26, 2010

The homebuyer tax credit applies to both first time homeowners and existing homeowners. It is only available for home purchases made on or before April 30, 2010.

The tax credit for existing homeowners applies to homeowners who have lived in their home for five of the past eight years. If you qualify, you could receive a tax credit equal to 10 percent of your new home’s value (up to $6,500).

This, combined with the deals on many homes in the market, makes it an incredible time to purchase a new home. Many families are using this unique opportunity to move up when they purchase their home.

For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 are eligible for this full tax credit. Reduced tax credits are available for those making up to $20,000 above each of these levels.

Homeowners must also maintain the home as their principal residence for at least three years to avoid having to repay the tax credit. If you have been considering purchasing a new home, you’ll want to take advantage of this limited time opportunity before time runs out!