To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-time Home buyer Tax Credit may be applied to primary residences, including:  single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000.  Each home buyer’s tax credit is determined by two factors:

The price of the home-the credit is equal to 10% of the purchase price of the home, up to 48,000.

the buyer’s income-single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum tax credit.

If the Buyer(s) Income Exceeds These Limits, Can He/She Still Get a Credit

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly.  The amount of the tax credit decreases as his/her income approaches the maximum limit.  Home buyers earning more than the maximum qualifying income-over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No.  The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more.  However, if the property is sold during the three-year period, the credit will be recouped on the sale.

“Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.”

What Does This Mean in the Texas Hill Country?

The real estate market in Fredericksburg TX has become more first-time buyer friendly than ever before.  Prices have yielded to downward pressure in the national market and Fredericksburg TX homes suitable for small families have begun to be available at prices of $150,000+.

Fredericksburg Texas is a great place to raise a family. Maybe the home you have been wishing for is attainable with a boost from the tax credit.  Now is the time to look!

If you would like more information about what is currently available on the real estate market in the Texas Hill Country, please feel free to contact me.  As your REALTOR®, I would be happy to help you find that first dream home.  Call me at (830) 456-6243 or email (JavaScript must be enabled to view this email address).