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Get Your Real Estate License and Help Buyers Benefit From $8K Tax Credit

In an effort to further stimulate the housing market and address economic challenges in our country, the United States Congress has passed legislation that provides a tax credit of up to $8,000 for people purchasing their first home. Now here’s where you come in - get your online real estate license with Allied Real Estate School and spread the good news for first-time home buyers!

To qualify for the 2009 First-Time Buyer Tax Credit, which is sure to help many people make the dream of home ownership a reality, your client must purchase the home sometime between January 1, 2009 and December 1, 2009. In addition, the buyer or his/her spouse may not have owned a residence for at least three years prior to buying the home.

While the maximum amount of tax credit given to those who qualify is $8,000, there are two main factors involved in determining the total for each buyer: the price of the home and the annual income of the purchaser. While the credit will be equivalent to 10% of the purchase price of the home, up to $8,000, single buyers who make $75,000 or less, as well as married couples who earn up to $150,000, are eligible to receive the most credit.

If a buyer’s income surpasses these limits, but does not exceed the maximum, they may still qualify. The credit amount decreases for single buyers who bring in between $75,000 and $95,000, and for buyers filing jointly who gross between $150,000 and $170,000 per year. (Those with incomes that exceed $95,000 for singles and $170,000 for couples are not eligible for the tax credit.)

Buyers who occupy the home for a period of at least three years are not required to repay the tax credit and, since it is fully reimbursable, can get their credit returned to them in the form of a payment.

With the recent announcement of the eagerly anticipated guidance from the U.S. Department of Housing and Urban Development (HUD), there is even more positive news for first-time buyers. FHA-approved lenders have been given the okay to begin the development of bridge-loan products which will make it feasible to use the benefits of the federal tax credit upfront. Home buyers can use these loans to help cover closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

Many potential first time home buyers are unaware these programs exist. Obtain your real estate salesperson license, educate first time buyers and transform them from renters to proud home owners - a dream they may have never thought possible. Allied Real Estate School can help with100% online real estate courses that fit your unique schedule. Start today, because you deserve more than a job - but a rewarding career that makes a difference in the lives of people you help.

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