Although scaled back from the $15,000 credit proposed in the Senate, the $787 billion economic recovery package signed into law by President Obama does contain tax incentives for first time home-buyers. The new program is a tax credit of 10% of the purchase price of the home with a maximum credit of $8,000.
USA Today reports that unlike the program that this legislation replaces, this is a true tax credit that is subtracted from the amount of tax owed to the government. To be eligible for the full credit, the person must be a first time home-buyer, and must make the purchase between January 1 and December 31, 2009. To avoid any type of repayment, the person must own the home for at least three years. Finally, the amount of the credit is scaled back if Adjusted Gross Income (AGI) exceeds $75,000 for a single person or $150,000 for a married couple.
Following the passage of the Stimulus bill, the markets have been shaky. The stock market has seen some tough days. For the moment, this has not affected the mortgage bond market and interest rates remain low. However, should the current trend continue on Wall Street, bond yields should begin to rise, which will ultimately move interest rates higher. If you have a loan in process, now would be a good time to consider locking your rate.
If you are a first time home-buyer thinking about buying a home in Dallas, now is the time to act. Take advantage of both the newly approved tax credit and the low interest rates in the market today. In Dallas, your bargaining strength as a credible buyer is exceptionally strong. There is a shortage of both higher quality properties and qualified buyers in the market today.
And by all means, please contact a Dallas REALTOR® if you are a first time home-buyer. It costs you nothing to obtain representation when you buy a home, and it can save you tremendously. The credit and housing markets are challenging in this times, don’t go it alone.
Avg. Sales Price: $229,935
Avg. Days on Market: 85
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