Tax Credit/Financial Incentives

The American Recovery and Reinvestment Act is a $789 billion stimulus package aimed at bolstering the economy.

The first-time buyer tax credit has been expanded to $8,000 for buyers who have not owned a home during the last three years.

Contact us now to see if you are eligible for the extended tax credits.

Key provisions of the tax credit:

• Homebuyers are not required to pay back the credit if the buyer remains in the home for more than three years.
• The tax credit is fully refundable, allowing buyers to claim the full amount of the credit regardless of their tax liability.
• Homebuyers who receive the tax credit are allowed to participate in the mortgage revenue bond program.
• State housing finance agencies are permitted to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds.
• The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.  Buyers are required to repay the credit if they sell their homes within three years.
• The tax credit is applicable to any home that will be used as a principal residence.  Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums.  Manufactured homes and houseboats used for principal residences also qualify.

A new loan program is available to first-time homebuyers in Missouri to turn the federal tax credit into a down payment on a home.  The Missouri Housing Development Commission will loan a first-time buyer $6,750 to use as a down payment at closing and be paid interest-free when the homebuyer receives the credit at tax time.