Mortgage Video & Blogging Community

New Jersey
First Time
Home Buyer
Tax Credit
Questions
&
Answers

How Much Time Is Left? – It is time to get moving!!!!  The credit applied to homes purchased before May 1, 2010 (and on or after November 7, 2009).  New Jersey home purchases which have a binding contract before May 1, 2010 will qualify as long as the closing occurs by June 30, 2010.

Am I Eligible? – You may be eligible for an $8,000 credit if you are a New Jersey first time home buyer or a $6,500 credit if you are a qualified current home-owner who has lived in your current home for five consecutive years out of the last eight (move-up buyer).

What Are the Income Limitations? – Single taxpayers with income up to $125,000 and married taxpayers with income up to $225,000 qualify for the full credit.  These limits apply to both first-time and move-up buyers.  Partial credits are available for single taxpayers earning between $125,000-$145,000 and married taxpayers earning between $225,000-$245,000.

Is It a Tax Credit or a Tax Deduction? – Provided you stay in the home for three or more years, the tax credit is a true credit – it reduces your tax liability, it is not a deduction which reduces your taxable income.  This means that if you have no tax liability, or if your tax liability is less than the credit amount, you will be paid the net amount of the credit due.  This is like the government giving you a housewarming gift!!!

How Do I Claim the Credit? – The credit is claimed using form 5405, which you file with your original or amended tax return.  You can claim the credit on your 2009 taxes, even if you purchased the home in 2010, by filing an amended return.

What Documentation Do I Need to Provide to Claim the Credit? – You will need to provide proof that the sales has closed, such as a copy of the HUD-1 Settlement Statement.

For more information, go to www.hud.gov or www.irs.gov

Don’t forget to check out my article about
New Jersey FHA Mortgage and Multi-Unit Properties for First Time Home Buyers

Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!

I hope you have enjoyed this blog.

Until next time,

Tony
201-943-6800

P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey (NJ) office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.