CHICAGO CONDOS

Great news for first-time home buyers and repeat buyers! The federal government’s popular First Time Homebuyer Tax Credit has been extended into 2010. The government has also established a new Move-Up and Repeat Buyers Tax Credit.

Home shoppers, lenders, even staff at title companies, were racing—and bracing—for the previous deadline for first-time buyers, which was due to expire November 30, 2009. The new deadline is April 30, 2010, and applies to both tax credits.

The First Time Home Buyer Tax Credit is equal to 10 percent of the home’s purchase price, up to a maximum of $8,000. The Move-Up and Repeat Buyers Tax Credit is equal to 10 percent of the home’s purchase price, up to a maximum of $6,500.

Eligible properties include condos, townhomes and single family houses that are to be used as primary residences by the recipients of the tax credit. In both programs, the purchase price of the home must be $800,000 or less.

For purposes of these tax credits, the government defines a first-time buyer as “Someone who has not owned a principal residence during the three year period prior to the purchase.”

The definition of a repeat buyer is “A home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date” (of the new property).

Generous income guidelines apply for the extended First Time Home Buyer Tax Credit and the new Move-Up and Repeat Buyers Tax Credit. Contact any of our preferred mortgage specialists for more information.

“We’re very pleased that the extension has been given to first-time buyers, and that the new credit is in place for move-up and repeat buyers,” says Brian Kuzdas, owner and founder of OwnACondo.com.

“Still, it’s extremely important for people in either group to remember that these credits are temporary, and that strict deadlines still apply,” he says. “Purchasing a condo or other place of your own is a process. There’s the research, the shopping, the financing, the closing…it’s an exciting process, but it’s important to keep in mind each step takes time.”

Qualified buyers claim the First Time Home Buyer Tax Credit or the new Move-Up and Repeat Buyers Tax Credit on their federal tax returns. Generally speaking, both programs are relatively easy to understand. If your tax return shows that you are due a refund, the refund will be increased by the amount of the credit. If your tax return shows that you owe taxes, the credit can be used to satisfy all or a portion of what you owe.

Illinois residents may also qualify for the Home Start Loan Program, which offers qualified buyers a choice of a 30-year fixed-rate loan or a down payment assistance loan.

Contact OwnACondo.com for additional details about all these programs.

This overview is designed to provide only a general guide to the $8,000 First Time Home Buyer Tax Credit and the $6,500 Move-Up/Repeat Home Buyer Tax Credit. For more information specific to your unique situation, please be sure to contact a qualified tax advisor or legal professional.