About 6 months ago, congress sent President Obama a plan to give home buyers an extra time to qualify for up to $8000 in federal tax credits.
This relief meant many first time home buyers purchasing new homes, short sales and REO’s could breathe a sigh of relief. Many of the first time home buyers who would have the ability to claim a credit were on the verge of losing it completely. Stricter lending guidelines, slow short sale departments, builder back log and other issues made many buyers exceed their deadlines.
The real big news however, is that certain Defense emplyees and Veterans can still claim up to $20,000.00 for first time home buyer tax credits and grants. Members of the military and certain other federal employees (CIA, NSA, DOD and related) serving outside the U.S. have an extra 12 months to buy a home in the U.S. (and US territories including Guam, the US Virgin Islands, Puerto Rico, and the Northern Mariana Islands) and qualify for the credits. Service members (including) civilians on official extended duty who were deployed or served off shore, have an automatic extension for up to one year (June 2011) to claim their federal tax credit of $8,000.00. Additionally, California first time home buyers will receive $10,000.00 in state issued tax credits. The following states also have credits for first time home buyers: Colorado, Delaware, Florida, Idaho, Illinois, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee, and Virginia. Finally, VA Home Loan Centers is issuing a grant of up to $2,000 for anyone who use VA Home Loan Centers to apply for a VA Loan. These credits are for both the first time home buyers as well as the move up buyers.
Thus, an eligible taxpayer must buy, or begin the buying process to buy a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule.
The special $20,000.00 grant / tax credit rebate applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010. If you have been deployed or serving in the intelligence community overseas during this timeframe, you will qualify. These funds can be used for downpayment, closing costs, or cash back.
To request a VA home loan application, contact VA Home Loans Centers.
