Simply unbelievable! A first time home buyer credit could be yours even if you have previously owned a home. In fact, for limited periods, the United States government offers motivation in the form of thousands of dollars if you are buying a first home. But once the credits become available, don't dilly-dally. They never last forever.
However don't rule yourself out because you owned a house in the past. Sometimes there's even huge credits for repeat home buyers. *Guidelines can change without notice.
Just recently one of my Readers asked me for clarification...
From time to time, thousands of dollars are offered as a tax credit for buying a first home with the intention of breathing life into a struggling real estate market and lagging economy.
What is the IRS definition of a first time home buyer? The IRS defines first time home buyers as unmarried individuals or married couples with no current ownership in a personal residence for the previous three years. It goes on to state there are one or more exceptions and to consult a tax professional for clarification.
Four recent highlights to the IRS first time home buyer credit.
In addition, mortgage programs are occassionally created to benefit first time home buyers. For these purposes, someone buying a first home is defined by the specific organization responsible for offering the program, for example Fannie Mae or FHA.
What is the FNMA definition of a first time home buyer? Fannie Mae determines a first time home buyer as an individual buying a personal residence with no homeownership during the preceding three years.
For married couples, the homeownership history of both the home buyer and spouse is included. However, exceptions are made for displaced homemakers or single parents who had a joint ownership with a previous spouse.
Take a look at the HomePath financing, an excellent FNMA alternative to the IRS credit.
What is the FHA definition of a first time home buyer? FHA defines a first time home buyer as anyone with no ownership in a principal residence during the previous three year period, including any individual who has only owned with a former spouse while married.
An owner of a mobile home not affixed to a permanent foundation is considered to be a first time home buyer. So are owners of property not in compliance with building code, not re-buildable for less than the cost of constructing a permanent structure.
More on FHA Loan Requirements right here on my website.
Confused? It's okay and it's understandable. But don't let confusion over IRS, Fannie Mae or FHA guidelines stop you from buying a first home and receiving a tax credit when available.
First time home buyer credits can and will change.
Don't assume you make too much money to receive the first time home buyer credit. The IRS website states qualifying is calculated using adjusted gross income. Consult a tax professional for details.
So make the decision today to consult a tax professional and mortgage lender for clarification and assistance regarding the availability of the first time home buyer credit.
* The IRS, FNMA, and FHA can change their guidelines and programs. Always consult a real estate agent, lender, or CPA for up-to-date advice.
You'll also find a wealth of information at Kate's Best Mortgage Rate Blog packed with the latest additions to this website, interest rate updates, and a fresh approach to affordable homeownership.
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