7 Tips for Move Up/Repeat Home Buyer Credits

Who Knows What the Move Up/Repeat Homebuyer Tax Credit Entails?

We hear about the First Time Homebuyer Credit everyday, this program has been fueling the housing market for over a year and has been the stimulus for many killer opportunities for those looking to get into the real estate market. So what about the Move Up/Repeat buyer. Not talked about nearly as much, is it?

Here Are 7 Tips that You or a Friend Can Benefit From

1. Who is eligible and for how much? Move-up or repeat home buyers purchasing any kind of home, condo or dwelling are eligible to claim this credit.
2. How long do I have to live in my current home? You have to have owned and resided in the same home for at least five consecutive years of the eight years before the purchase date. If you are married, both spoused must have been in the home for at least five years.
3. How much of the credit is allotted? The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
4. Is there an income limit? Darn. Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. There are adjusted gross income limits, etc. but as a disclaimer I must always recommend that you consult a tax expert to figure this out for you. We know a few and would be happy to provide contacts if you need one.
5. Do I have to live in the house? Yes, this is a credit designed to open the opportunity to a new home in a historic buyer’s market.
6. How much can the home cost? The credit limits you to no more than a purchase price of $800,000.00.
7. My cousin is short selling her home, can I buy it and get the tax credit? It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information.

To sum it all up, when inventory is high, demand is low, which gives you the negotiation power to get a screamin’ deal. No need to sound like a broken record, folks, if it feels like your time to move, get out there and seize the opportunity!