Colorado Springs Vintage Homes Blog
719.287.1049
Tax Credit — Who is a first time home buyer?
Colorado Springs Vintage Homes is happy to feature a great article by
Bryan Yaninek with Castle & Cooke Mortgage, LLC
Here are some of the top questions complied and answered by the National Association of Mortgage Brokers, the National Association of Realtors and tax advisers!
Part I of Tax Credit Explanation
Who is Considered a First-Time Home Buyer?
There are other scenarios to consider! This one is easy; anyone who has not owned a home within the last 3 years. If they sold a home 3 years ago, the date on the HUD 1 is the determining factor.
- For a married couple, if one person owned a home within the last 3 years and the other did not, they don’t qualify for the tax credit.
- However, if an unmarried couple jointly buys a home, and one person owned a home (within 3 years) and the other did not, they can “designate” the tax credit to that person who will be able to claim it on their individual tax return. This rule also applies for parents to co-sign on a mortgage. The parents own a home. The son or daughter is FTHB-the child can claim the tax credit.
- Okay, one more scenario. If the FTHB owns a vacation home or rental property, which was not used as a primary residence within the last 3 years, they may qualify but will have to be able to prove it!
- A non-US citizen, who meets resident-alien status (defined by the IRS Publication 519) is also eligible as long as they meet the requirements above and income limits.
Types of Homes
Pretty much any type of home qualifies-as long as it is a principal residence (as defined by the IRS). Single family, town homes and condos, manufactures or mobile homes and yes, houseboats all qualify! A newly constructed home purchased from a homebuilder is determined by the date on the HUD 1.
However, If a borrower is building a home (for a principal residence) and owned the land prior to January 1, 2009, the tax code says that the “purchase date” is the date that the owner “first occupies” the home which must be between January 1 and December 1, 2009.
Part II will include ** Is It a Tax Credit or a Loan? ** How the Dollar Amount of Tax Credit is Figured ** Income Limits ** Potpurri
If you enjoyed reading this article, why not Other posts by Bryan Yaninek:
- 5 things you need to know about FHA Mortgages
- What the current lending market means to you as a home buyer or a seller
Bryan Yaninek is affiliated with Castle & Cooke Mortgage, LLC, a Licensed Mortgage Broker in the state of CO Department of Real Estate.
For more information, please call 719-457-2200.
Kathy (719-287-1049) KTorline@msn.com
