Category: First Time Home-Buyers.
How do I claim the tax credit for first time home buyers? Do I need to fill out an application? This is a really easy program for first time home buyers. You will claim the tax credit on your federal income tax return. No other applications or forms are required. No pre approval is necessary; however, prospective first time home buyers in Sparks will want to be sure they qualify for the credit under the income limits and first time home buyer tests. Please check with your Sparks tax preparer or lender for further details.
Are there income qualifications?
Yes. This program is designed for first time home buyers whose individual whose Modified Adjusted Gross Income (MAGI) is less than $75,000, or married taxpayers filing joint returns with an Adjusted Gross Income (AGI) of less than $150,000. There may be partial credits available for some first time home buyers whose MAGI exceeds the phaseout limits. You will need to contact a lender, or your tax preparer to determine your qualifying income.
How does this help me buy a home in Sparks?
The minimum down payment required for an FHA loan is 3.5%. On a $200,000
loan, this would only be $7000.00. If you have a 401k, funds may be able to be borrowed from that for your down payment and the tax credit received could repay those funds. There may be other ways available to access this tax credit towards a down payment by reducing income tax withholding. Please check with your tax preparer or lender for further details. We may be able to structure an acceptable offer that would include the seller covering the closing costs on the purchase in Sparks, further reducing the funds needed by the buyer to complete the home purchase.
Since the median home price is 40% lower than the market high, current prices equal to where they would have been anyway without inflated markets, this is a great opportunity to purchase a home for what most people are paying in rent. We have somewhere in the neighborhood of 500 homes in Sparks/Reno under $200,000.
Next blog we will discuss Buying vs. Rent. You won’t believe the numbers.
Can you afford NOT to buy a home? We don’t think so..