There seems to be a lot of misinformation floating around with real estate agents and home buyers on the 2009 Federal Tax Credit of $8000. Here's some of the most commons questions.

Who Qualifies?

• Single people earning less than $75,000 modified adjusted gross income
• Married people earning less than $150,000 a year combined modified adjusted gross income
• First Time Home buyers or people that have not owned a home in the past 3 years
• Investors do not qualify

 When do I have to purchase by? 

• Homes must be purchased and closed by December 1, 2009.

 What kind of home can I buy? 

• Any kind of home, single family, town home, condo, manufactured homes and multifamily as long as it's owner occupied

Do I have to repay the $8,000?  

• There is no payback required if you stay in the home as your primary residence for 3 years. 

What if I'm buying this home with someone else?

• If you are married you both have to be first time home buyers
• If you are not married, only 1 person has to be a first time home buyer, the first time home buyer can claim it on their taxes.

What if we make more than $150,000?

• If you make more than $150,000 there is a phase out portion for couples that earn up to $170,000 a year. So for example, if you earn $160,000 a year you could qualify for half the credit of $4,000.

 Can I use it for down payment?

• This is not a down payment assistance program. You must still come up with your down payment of at least 3.5%.

What if I don't normally owe $8,000 in taxes?

• If your normal tax liability for the year is for example $5,000, you would still get the $8,000 credit.

How is the credit determined?

• The tax credit is equal to 10% of the purchase price to a maximum of $8,000. So, if you buy an $80,000 home, you'd get $8,000. If you buy a $150,000 home you'd get $8,000. If you buy a $50,000 home you'd get $5,000 which is 10% of the purchase price.

I hope that answers some questions.

If you are thinking of buying or selling a home in or around Atlanta, contact local expert Jen Bowman, Realtor and Broker Associate with Success Realty. 404-456-5024.

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