Charleston Real Estate Market

 It’s not free money! No one will hand you a check or reduce the amount of your closing costs or down payment, but it is a way to help you financially in the first year of your purchase.WHAT IS IT?  Here’s a recap by Joel Greer at Carolina One Mortgage

It is a tax credit. A tax credit is a dollar-for-dollar reduction in the amount of taxes that you owe. It can result in a tax refund. It is calculated as 10% of a purchase price up to $75,000. That’s a maximum of $7500 off your taxes.

It must be repaid.  Beginning in the second year of ownership, you will add $500 to your tax payment each year.  If you sell your home for a profit, you must repay the balance of your credit in full.  If you sell your home at a loss, your balance is forgiven.

WHO IS ELLIGIBLE?

If you have not owned a primary residence in the previous 3 years, you qualify as a first time home buyer in this program. If you are married, both of you must meet this qualification.

The income qualififiers are:     Single - makes under $75,000 (Modified Adjusted Gross Income)                         Married- combined income of less that $150,000(MAGI)

What Kind of Home Qualifies?

Any kind of home (single family, condo or townhouse) new or resale.  It must be used as a primary residence. It must close between 4/9/08 and 7/1/09. 

Please keep in mind that there are bad apples in every profession. Always deal with professionals working with  recognized companies within any industry. I’ll be happy to recommend professionals that I personally know and trust in each phase of buying or selling a home. 

Filed under: Around Town, Real Estate News on August 14th, 2008