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Active duty military are not only qualifying for the benefits of a VA Loan to buy a home in Minnesota, they may be qualifying for a special exception to the $8,000 tax credit rules. As we’ve reported before, first time home buyers can qualify for a tax credit by completing a home purchase on or before April 30^th of this year. But, if you are a qualified service member on extended duty, you have another full year to buy a home and get the tax credit.  At VALoansMN we generally dislike mumbo jumbo and mortgage talk preferring instead to just talk to ‘the folks’ in plain language. So forgive us for the following formal definitions. We just want you to have a thorough understanding of how this works for you.

Into the Weeds

• First Time Buyer:  a person who has not owned a principal residence for the three year period prior to the purchase. This means, if you’ve owned a home before but let’s say you’ve been renting or living with family for the last three years, you are a first time home buyer and can qualify for the tax credit.

• Qualified Service Member:  a member of the uniformed services of the U.S. military, a member of the foreign service of the U.S., or an employee of the intelligence community.

• Extended Duty:  duty outside the United States for at least 90 days between the first day of this New Year and the first of May, 2010.

Here’s the Deal

If you meet these three definitions you can buy a home and still get the $8,000 tax credit until 2011.  Just enter into a home buying contract by April 30, 2011 and complete that purchase by the end of June. We also encourage you to look into your VA loan benefits to help with that purchase. A VA loan still allows you to borrow the entire purchase price and it does not come with monthly mortgage insurance payments. No money down, no mortgage insurance payments and an $8,000 tax credit is a very attractive home buying package for Minnesota veterans and active duty military.