New Jersey First Time Home Buyers Frequently Asked Questions about the $8,000 Tax Credit.
Q: Who is Eligible for the Credit?
A: The $8,000 Tax Credit is available for First Time Home Buyers only. The law defines “First Time Home Buyer” as a person who has not owned a principal residence during the three -year period prior to the purchase.
Q: Are there payback provisions?
A: The Tax Credit is a true credit. The only repayment requirement is if the homeowner sells the home within three years after the purchase in which case the entire credit would have to be repaid.
Q: Are there income limits to qualify for the credit?
A: Home buyers who file as single or head of household qualify if their adjusted gross income is less than $75,000. For married couples filing a joint return the income limit doubles to $150,000. The tax credit begins to phase out for single filers making over $75,000 up to $95,000 and married couples earing over $150,000 to $170,000.
Q: What are the effective dates of the Credit?
A: The credit is temporary. First Time Home Buyers must purchase their home between January 1, 2009 and close on or before November 30th, 2009.
Q: Is the Tax Credit refundable?
A: Yes. A refundable credit means that if you owe $1,000 in Federal income taxes you would receive a $7,000 payment from the government. If you were to receive a refund of $2,000 you would get a check for $10,000 from the government .
Q: What years can buyer apply the tax credit to their tax returns?
A: Home Buyers can amend their 2008 tax returns to get the credit early or apply for it when they file their 2009 returns.
Q: What types of homes qualify for the credit?
A: Single Family, townhomes or condominiums are eligible as long as they will be used for a primary residence.
Remember-the tax credit is temporary and expires this year so plan accordingly. The homebuying process may take several months especially if you purchase a short sale.
The key is to Be Prepared and Pre-qualified so when you find the home that perfect home you can confidently make an offer and close with less stress.
New Jersey’s FHA Mortgage Source
Superior Mortgage Corp.
1030 Hooper Ave.
Toms River, NJ 08753
732-818-0802
Email Rick
*This is not an offer to lend. 
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