Home buyer tax credits Overview

$8,000 First-time Home Buyer Tax Credits

• The $8,000 tax credit is for first time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within the three years after the initial purchase.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010, However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010, However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Now is the time to Buy! Click here to find a Heritage Oaks Bank Residential Loan Consultant eager to help you get started.

For additional information, visit the IRS's website at www.irs.gov. The information listed here is a brief summary of portions of the Worker, Homeownership and Business Assistance Act of 2009 and should not be used as a substitute for consultation with a qualified tax professional. Because each taxpayer's situation may vary, Heritage Oaks Bank urges you to get independent tax advice from a qualified professional before purchasing a home.