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Answering a couple of reader questions about the 1st time home buyers tax credit

May 11th, 2009 · 1 Comment · Tax credit for first time home buyers in Macomb County MI, tips for home buyers, Up to $8000 1st time home buyers tax credit

This past week I received 3 email inquiries about the (up to) $8000 first time home buyers tax credit and even though I responded to the people who asked the questions via email, I realized that the questions they asked are ones that I’m sure many others have questions about.

If I buy a HUD home with the $2500 closing cost gift can I still take that 1st time home buyers tax credit? Yes you can.   The $2500 closing cost promotion from HUD for Michigan home buyers is a completely different incentive from the governments first time home buyers tax credit.

I own a home in another state but someone else is living in it.  Can I purchase a home in the state I’m currently in and take the credit? Not to my knowledge.   My understanding is this:  The first time home buyers tax credit is for those who have never owned a home before, or someone who owned a home and sold it 3 years prior to purchasing the new home.   As always, check with your tax professional or contact the IRS directly for clarification, but nothing I’ve read indicates that you would be considered a “1st time home buyer”.

If my husband and I buy a home in Mt. Clemens for $55,000 what is the tax credit? $5500 or $8000? Your tax credit would be for 10% of the purchase price ($5500).

If you’d like more information about either the HUD promotion that currently is in place for Michigan, or about the First Time Home Buyers tax credit that expires at the end of November please don’t hesitate to contact me. As always, ask me about buyers agency in Michigan.  I’d be happy to help you sort through all your home buying options.

Kris Wales – A partner for your real estate needs in Macomb County MI – search homes for sale in Macomb County MI with MLS provided data

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1 response so far ↓

  • 1 lydia // Jun 1, 2009 at 2:26 pm

    Would I be able to buy a Home from HUD?
    I am a single Parent I have been on the job for five years . I have a voucher will I be able to have a chance with the HUD credit? How much do I need to put down I live in Chicago

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