HLM Mortgage Blog

There has been some confusion on the first time home buyer credit that is allowed for those who have not owned a home in the last 3 years.  This is not a loan, but a tax credit.  There is no application for the credit.  Instead, those individuals who purchase a home between April 2008 and July 1, 2009 will receive up to $7500 in tax credit when they file thier tax return with IRS.  They will do this by filing the proper form with their tax return.  This credit will effectively reduce the amount of tax due to or due from the tax payer at the time of filing.  Those people who normally receive a refund will have an even larger refund with the credit.  There are income limitations as this is a credit for those with an adjusted gross income of less than 95k and joint filers with income less than 170k.

Also, if the home is sold within a specified time frame, then the tax payer will have to pay back IRS a prorated share of the credit.  This will also be done at the time of filing the tax return.

For more information visit this very informative site: http://www.federalhousingtaxcredit.com/faq.php#3

If you are a first time buyer and would like to know more about this and the various loan options available, please give Mercedes Pasqualetti at call at 404-836-1120 ext. 110.