Potential first time Home buyers in Albuquerque and Rio Rancho NEED to be aware of this tax credit. You get this credit after you file your taxes next year. I will give a run down of the basics.
* Amount of Credit - Maximum credit is 10% of the value of the home, not to exceed $8,000.
* Income Limit - As a single head of household, you are eligible if your income is no more than $75k. Those that file a joint tax return may have no more than $150k. The credit phases out if income exceeds these limits up to $95k for individuals and $175k for joint returns.
*First Time Homebuyer - Not exactly...if you have not owned a home within the past 3 years you still qualify.
*MFA - If you use this New Mexico program, you are now eligible to receive this credit! If you are not familiar with NMMFA, contact me, it can save you money.
*Recapture - If you sell the home within 3 years, you must repay the credit.
*Effective date - Purchases on or after January 1, 2009, and before Dec. 1, 2009.
Allright, so you're a first time home buyer and a little worried about committing to a home. If your payment is $1000/month, this credit could make your payments for 8 months! Don't forget the tax deductible mortgage interest. Factor in incredibly low mortgage rates, and NOW may be the best time to buy.
**Disclaimer** - CONSULT A TAX ADVISOR TO GET SPECIFIC GUIDANCE RELEVANT TO YOUR CIRCUMSTANCES.