Attention First Time Home Buyers in Franklin and Bedford County,VA!

I think everyone knows what a great area Smith Mountain Lake and the surrounding areas of Virginia are! Personally I don’t think there is a better part of the country! If you have been dreaming of owning a home in Bedford or Franklin County, now may be the time. The American Recovery and Reinvestment Act’s $8000 Tax credit for first time home buyers will soon be over. It is not too late to take advantage of the program!!

The program is open until December 1, 2009. If you want to qualify for the program, you need to get started as soon as possible. Closing should be started no later than October 15th. To be eligible for the credit; you need to complete the purchase of the home by November 30, 2009. For the purposes of the tax credit, the purchase date is the date when you close and the title transfers to the new home owner. Because of the newer lending guidelines closing can take a little longer. But that doesn’t mean it is too late, but time is running out!

First time home buyer can qualify for a tax credit of 10% of the purchase price of the home with a maximum credit of $8000. So the question is: who qualifies for the tax credit. Under the Act, a first time home buyer is someone who has not owned a principle residence in the last three years, whether under your name or your spouse’s. The home purchased can be a new home or a resale.

The income guidelines are pretty simple. To receive the full tax credit, a single taxpayer’s maximum income is $75,000. For married taxpayers who file jointly, $150,000 is the maximum. If you make more than those amounts, the tax credit is calculated by income, up to $20,000 above the maximum. Just as an example, if a single taxpayer has an income of $95,000 they will not qualify for any of the credit. If they have an income of $85,000, then the credit amount is calculated according to that income.

If you have any questions about the American Recovery and Reinvestment Act, call me - Vicki Millehan! I can help you find that dream waterfront property and help you find out if you qualify for the tax credit. There is so much to see and do here in Smith Mountain Lake, VA! Come for a visit, and if you like then move here!!