New Tax Credit Questions

Since the new home buyer tax credits have been approved a lot of possible buyers have questions regarding how the new credits work.  Following you will find answers to good questions that you as a potential buyer may have.

As a current home owner how can you apply for the $6,500 credit?

A buyer must have lived in their home for at least five out of the last eight years. The home they will purchase must serve as their primary residence, but the buyer will not need to sell their previous home. The previous home could be used as a rental, or a second home and still claim the credit.

Does a buyer need to purchase a new home that is more expensive than the one the buyer currently owns?

You can downsize to a lower priced home, but if the property sells for more than $800,000, a buyer will not qualify.

If you are building a new home can you claim the credit?

Yes, as long as the contract is complete by April 30 and you must move in by July 1.

If you purchase a home from a relative will the credit still apply?

No. You are not allowed to claim the credit if the sale is between related parties.

Now is the best time to purchase a home in Hoboken. With low mortgage rates available, along with the recent passing of the new tax credits, this may be the opportunity you have been waiting for. For more information contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  He can be reached at eddie@InvestHoboken.com or 201-344-2886.

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