Here are details on the federal tax credit for homebuyers that can be used on all FSBO.com properties that is part of the The American Recovery and Reinvestment Act of 2009 and was extended/expanded until April 30, 2010... - First-time homebuyer tax credit equals $8,000 ($4,000 if married and filing separate). Only first-time homebuyers are eligible or the purchaser (and purchaser's spouse) must not have owned a principal residence in the last three years. - Current homeowner tax credit equals $6,500 ($3,250 if married and filing separate). Eligible homeowners must have owned their current home as their principal residence for 5 of the last 8 years. - Effective for properties with a binding contract dated prior to April 30, 2010. The property needs to close by July 1, 2010 in order to be eligible for the tax credit. - The property purchased must be single-family (condos & townhouses included), used as a principal residence for three years, and may not exceed a purchase price of $800,000. - There is an income limit of $125,000 per individual (adjusted gross income) or $225,000 if filing a joint return. Individuals above these salaries may still receive a portion of the tax credit. IRS Form 5405 will help to determine this. - This tax credit does not have to be repaid if the property is purchased during the effective dates. This tax credit can be used on all FSBO.com properties, as long as indviduals meet the federal criteria. This is just a basic summary, FSBO.com recommends you consult a tax professional for more specific information that may pertain to you, as several states also have local policies/incentives. Consumer Information: FHA, HUD, Fannie Mae, Freddie Mac, Mortgage Bankers Association, Federal Reserve
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