A $7500 “Gift”

Among the programs already instituted by the federal government to help the national housing slump is the $7500 tax credit available to first time homebuyers. Designed to encourage activity at the base level of the housing market, this program is available not just to anymore buying their first home, but also to anyone who has not owned a home for the past three years. There are income limits of $150,000 on a joint return, but a large number of people are eligible.

Buyers who qualify can receive an immediate $7500 as a credit against their 2008 taxes. The $7500 can be used for any purpose including down payment, closing cost, home improvements, etc. As the program now stands, buyers are required to repay the $7500 credit at the rate of $500 per year for 15 years. However, the mortgage interest deduction should more than offset the additional taxes.

If you know of anyone who has not owned a home for at least three years and would like to take advantage of this tremendous opportunity, have them contact me at slaunchbaugh@cbtulsa.com as soon as possible. With the high cost of rent, the current low mortgage rates, the affordability of homes in this market, and this $7500 “GIFT”, it just makes sense for those eligible to buy a home.