Rochester MN Real Estate Market Blog

The federal government recently passed a provision for first time home buyers who qualify, obtain an up to $7,500 tax credit against their federal income taxes.  Eligible buyers must be first time home buyers and the credit qualifies for both preowned and new construction homes. This is a tax credit which directly reduces the home buyers federal tax bill dollar-for-dollar however any savings incurred must be repaid at a rate of $500 per year starting two years after closing at zero interest.  The tax credit provision is designed as a stimulus measure to incentivize first time buyers giving them a substantial tax savings their first year of ownership. There is an income cap of $95,000 for individual tax payers and $170,000 for married tax payers and the tax credit goes down as income goes up. To review the all the terms of the provision see: http://www.federalhousingtaxcredit.com/index.html

Related posts:

1. Tax Credit Available for First Time Home Buyers
2. First time home buyers take note!
3. Updated Federal Tax Credit Information
4. Time is of the essence with First Time Home Buyer Tax Credit
5. March Market Update for Rochester, MN