TAX CREDITS FOR FIRST TIME HOME BUYERS

April 8th, 2009 2:04 PM

TAX CREDITS FOR FIRST TIME BUYERS:

NOW IS A GREAT TIME TO BE A FIRST TIME HOME BUYER (SOMEONE WHO HAS NOT OWNED A HOME IN THE PAST THREE YEARS.)  NOT ONLY ARE HOME PRICES LOW, A BUYER COULD QUALIFY FOR TWO TAX CREDITS.  ACCORDING TO A RELEASE BY THE NORTH CAROLINA HOUSING FINANCE AGENCY, GOVERNOR PERDUE RECENTLY AUTHORIZED THE NORTH CAROLINA HOUSING FINANCE AGENCY TO EXPAND ITS MORTGAGE CERTIFICATE CREDIT (MCC) PROGRAM, WHICH ALLOWS ELIGIBLE HOME BUYERS TO REDUCE THEIR FEDERAL TAX LIABILITY BY 20 PERCENT OF THE MORTGAGE INTEREST THEY PAY ANNUALLY.  THE MCC PROGRAM ENABLES FIRST TIME BUYERS TO TAKE A TAX CREDIT UP TO $2,000 EVERY YEAR THEY OCCUPY THEIR HOME.  THIS IS IN ADDITION TO THE ITEMIZED MORTGAGE INTEREST DEDUCTION THAT ALL HOMEOWNERS CAN CLAIM. 

 

FOR EXAMPLE, A HOME BUYER WHO BORROWS $146,750 AT 5.5% INTEREST PAYS $8,022 IN INTEREST IN THE FIRST 12 MONTHS.  THE 20 PERCENT MCC MEANS THAT HOME BUYER REDUCES HIS TAX LIABILITY BY $1,751 FOR THAT YEAR AND ALLOWS THE BUYER TO REDUCE HIS MONTHLY TAX WITHHOLDING ACCORDINGLY.  OVER THE FIRST 10 YEARS OF OWNERSHIP, THE HOME BUYER WOULD SAVE $14,873 IN TAXES PAID TO THE IRS. 

 

AS IF THIS ISN'T ENOUGH, EARLIER THIS YEAR, AS PART OF THE ECONOMIC STIMULUS PACKAGE, THE FEDERAL GOVERNMENT INCREASED THE FIRST TIME HOME BUYER TAX CREDIT FROM $7,500 TO $8,000 AND IT IS NOT REPAYABLE AS THE $7,500 CREDIT WAS LAST YEAR. BUYERS GET THE FULL CREDIT EVEN IF THEIR INCOME TAX WITHHELD IS LESS THAN THE AMOUNT OF THE CREDIT.  THE IRS WILL REFUND THE DIFFERENCE.  THERE ARE INCOME LIMITS AND THE PROPERTY MUST BE THE BUYER'S PRINCIPAL RESIDENCE.  IF THE HOME IS SOLD IN LESS THAN 3 YEARS OF OWNERSHIP THE TAX MUST BE REPAID, ALTHOUGH THERE ARE SOME EXCEPTIONS. 

 

FIRST TIME HOME BUYERS CAN CALL ANDY MCPHERSON WITH EXIT PREMIER REALTY FOR ALL THE DETAILS OF BOTH OF THESE PROGRAMS. 

Andy McPherson with Exit Premier Realty is your local expert for all your Real Estate needs in Matthews and Mint Hill, NC.  On Andy's website you have access to the most comprehensive MLS Listing Service with free access and lots of tools for Buyers and Sellers - Visit Andy's web site MatthewsMintHillHomes.com and put Andy to work for you; his service will impress you.  Or call Andy at 704-451-5988.

Mecklenburg Home Prices Level Off

March 27th, 2009 4:13 PM

Mecklenburg NC Home Prices Level Off

The business section of the Charlotte Observer featured an article that discussed home prices in Mecklenburg and surrounding counties in North Carolina.  The article noted that while home prices had been declining during 2008, prices have seemed to level off in recent months:  "Mecklenburg home prices held fairly steady in recent months, a rare glimmer of hope for local housing, according to unusualluy detailed data released Wednesday for the first time.  Mecklenburg's average selling price was even up a bit in February, compared with January.  The one month uptick bucked the overall region's downward trend for transactions through the Carolina Multiple Listing Services." .... "The MLS accounts for the majority of sales within roughly a 50 mile radius of Charlotte.  About 90% of those sales come from an 8 county region including Mecklenburg." 

Andy McPherson with Exit Premier Realty is your local expert in all your Real Estate needs in Matthews and Mint Hill, NC.  You have access to the most comprehensive MLS Listing Service with free access and lots of tools for Buyers and Sellers - put Andy to work for you; his service will impress you.

 

 

 

 

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