Tag Archives: first time home buyer

American Recovery and Reinvestment Act of 2009 Passes Tax Credit of $8,000 For Home Buyers




The Real Estate world was hoping for the $15,000 tax credit that was provisioned in the Stimulus Bill of 2009 set forth by President Obama.  Unfortunately, the House has negotiated to remove the $15,000 tax credit and replace it with a more moderate provision instead.

The 2009 Tax Credit is an $8,000 tax credit for First Time Home Buyers just like the previous tax credit fo $7,500 but even better mainly due to that you don’t have to repay this credit back.

Friday February 13th 2009, both the House and the Senate passed the American Recovery and Reinvestment Act of 2009 and President Obama is expected to sign it into law early this week.

$8000 tax credit highlights include:

  • The $8000 tax credit is available only to first-time home buyers and primary residence only.   (A first-time home buyer is considered a person who has not any ownership interest in a property in the last 3 years)
  • This is a tax credit and not tax deduction. It is a true dollar for dollar reduction on taxes owed. 
  • The credit can result in a true tax refund! If, for example, you were to get back zero on your 2009 taxes and you qualify for the full $8,000 credit, you would then receive a tax refund for $8,000. 
  • The $8000 tax credit is available only to first-time home buyers buying a primary residence between January 1, 2009 and December 1, 2009
  • The tax credit is not a loan and does not have to be paid back if owned more than 3 years 
  • Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $8,000 credit. A lesser tax credit is still available if your income is above these amounts.

This is Great News for First-Time Home Buyers in 2009!

If you are on the fence or need to borrow money from a family member who needs reassurance they will be paid back, this is a great resource to take advantage of.

For more information or if you want to get pre-qualified to buy a home feel free to contact me for more details

Justin Williams

Home Mortgage Consultant



*I am not a tax preparation firm and the above information does not represent formal tax advice; please seek council from a tax professional for details on your personal situation.


FHA First Time Home Buyer Cosigner Kiddie Condo Loan

FHA Mortgage Allows Non-Occupying Co-Borrowers or Co-Signers to help with the loan

The reason why this is a GREAT loan is because normally a  Co-Borrower must state that he/she will occupy the property with the Borrower on the loan therefore eliminating the potential of having co-signers due to the fact that the co-signers do not want to move.

FHA Mortgages although, allows a Non-Occupying Co-Borrower (Cosigner) to help in the loan process to help strengthen the loan and provide credit support and Income support as a co-borrower who does NOT HAVE to occupy the residence with the borrower.

*(Non-OCC’s)(Co-signers) can be on Refinances too but limited to 75-85% LTV rate/term & cashout)

  • The Co-Signer can be ANYONE from a family member to a long time friend.
  • 1 unit subject property
  • Having a Co-Signer can help Qualify the borrower to Appoved Status, keep in mind though the co-signer’s credit does not replace the borrower’s credit though.
  • The Borrower can do a FHA Streamline down the road to put the loan back in just their name to help ease the peace and mind of the co-signer.  The FHA streamline doesn’t require an appraisal and any income documents normally.

Why this is GREAT for your children

  • The parents want to help his son establish credit and provide housing for his son. What better way to do that than getting a home to help establish credit, become an investment, tax-writeoffs and of course provide housing for the son.
  • A lower, owner-occupied interest rate on the mortgage Vs the higher investment property interest rate.
  • Whether in College or after College, if you need to help out your children getting a kickstart in life, please consider an FHA Mortgage to help jumpstart his life rather than throwing money away renting.
  • Even better with the current market condition, you can probably snatch up a steal in a small beginner house with plenty of equity built in already.

Happy House Hunting!