• EastsideRealEstate.org

    $8,000 Closing Costs Credit for First-Time Buyers 

      In its efforts to stimulate the economy and revive the housing market

      Who is eligible to claim the Closing Costs Credit?  
     First-time home buyers purchasing any kind of home—new or resale—are eligible for the credit. 
     What is the definition of a First-Time Home Buyer? 
     The law defines "First-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. 

     For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer. 

      Are there any income limits for claiming the Closing Costs Credit?  
      No, there is no income limit.

      How is this home buyer Closing Costs Credit different from the tax credit that Congress enacted in July of 2008?  
    The most significant difference is that this credit does not have to be repaid and happens immediately at closing. This is not a TAX credit, merely an instant closing costs credit paid on your behalf from the seller; however, you will still need to have your down payment through approved sources to complete the transaction. 

      How do I claim the Closing Costs Credit? Do I need to complete a form or application?  
    Simply complete the Contact Us form on the right side of your screen. There is one 15-20 minute meeting to go over the process of purchasing and what you should expect.

      What types of homes will qualify for the Closing Costs Credit?  
     Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences. 


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