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Ann Arbor Real Estate Blog

Blog about Ann Arbor and Saline Michigan

Home Buyer Tax Credit For Move Up Buyers in Washtenaw County

Tax Credits

You’ve probably heard my now but the tax credit for first time home buyers has been extended to people who are not first time home-buyers. You are now eligible if you are a move up buyer in Washtenaw County.

What does this mean for you?

Well if you own a home in Ann Arbor or anywhere USA and you purchase a new home anytime from November 6th until June 30th, 2010 you can take a  tax credit of $6500.00 on your taxes.

Home Buyers

Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

FHA Buyers

HUD allows buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses. An FHA loan requires 3.5% down payment.

For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return.

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.

If you are moving and have loss of equity in your current home, this up to 10% tax credit can help off set some of your loss.

More Information

For more information go to the Federal Housing Tax Credit Facts and Questions.

Homes for sale in Ann Arbor Area MLS.

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