FIRST TIME HOME BUYER MISUNDERSTANDINGS

First Time Home Buyers Tax Incentive Money...Some of our buyers and sellers are hearing on the street that the tax incentive money is not coming back in the form of checks but only as a credit to your mortgage or to pay future taxes, etc. The answer is Not True, Possibly and Possibly. First of all, OUR first time home buyers have already received their tax money in the form of a check in the mail or bank account credit. We had one couple that purchased the week before Thanksgiving and had a partial check rec'd 2 days before Christmas - Nice Christmas surprise wasnt it. Please talk to your accountant to see whether or not you can apply - but as long as you are up to date on all of your past taxes and have closed a home during the timeframes set by the Federal Government for this incentive program you can either apply for an amendment to last years taxes or recoup your money after this next years postings. You then WILL receive a check from the government for the appropriate amount. If you owe on taxes, then yes, this money will go to credit the amount owed. Some people have also worked out with their lenders to turn the tax credit money around immediately following closing to pay into equity on their home paying off some of the amount due on their mortgage...Either way you work it, its pretty exciting when you can get free money to make an exciting transition such as buying your first home or making a move to a new home after you have lived in your home for a designated number of years. For more information on the Federal Tax Credit including expiration dates for this program or the amount of money available per purchase, please see the Fox Team Blog Spot posted December 2, 2009.