Aurora Mortgage Information

First-Time Home Buyer Tax Credit Program – in a Nutshell

If you’re planning to claim the tax credit, the first thing you’ll want to know is the new milestone dates.

You must be under contract by April 30, 2010
You must be closed by June 30, 2010

Again – It’s use it or lose it. But it isn’t just for first-time home buyers anymore.

Under the new rules, homeowners with at least 5 years in their current residence qualify for the tax credit, too. However, instead of the full $8,000 bonus afforded to first-timers, “move-up” buyers get capped at $6,500.

Most of the program’s qualification criteria remain as-is, with a few notable changes:

You may not acquire the home from a mother, father, spouse, or child
You may not acquire the home from an entity in which you’re a majority owner
You may not acquire the home by gift or inheritance
You must be 18 years of age or older
The subject property’s purchase price may not exceed $800,000
The subject property must be meant for use as a primary residence
All parties to the purchase must be meet the eligibility requirements

If you qualify, claiming your tax credit is simple:

Go under contract by April 30, 2010
Close by June 30, 2010
Submit IRS Form 5405 and your HUD-1 settlement with your tax returns

That’s it!

Remember that I am a loan officer and not an accountant. I can offer basic guidance, but paying a tax professional for expert advice is often the right way to go.