The first-time homebuyers tax credit that expires November 30, 2009, is a great benefit to take advantage of, particularly in this historic buyer’s market.  Low prices, plentiful inventory, and low mortgage interest rates.  What could be better?  This could be the year when you really NEED to acquire a home.  By buying rather than renting, you will have more control over your life, can use the interest you pay on your mortgage (almost 100% of your payments in the early years) as a deduction on your income tax, and have the opportunity to create value by making modifications to the home.

However, before getting started, look into the following exceptions flagged by our office’s loan originator, Alicia Westfall:

Offspring buying parent’s home: buyer ineligible
Spouse buying spouse’s home: buyer ineligible
Niece or nephew buying aunt or uncle’s home: buyer ineligible
Nonresident alien buying a home: buyer ineligible
Buyer purchasing, then renting property to tenant before filing: buyer ineligible
Buyer purchasing property owned by his company, of which Buyer’s ownership is 50%: buyer ineligible

I am not a tax professional, and (you know this) you MUST consult a tax professional before making decisions about tax-related issues. When you do that, confirm the exceptions above.  If they don’t apply to you; or if they do and you need a home anyway and want to pursue being qualified for a loan; call our office at 757.595.8895 and ask for Alicia. Or, if her line is busy, call me directly at 757.869.7070 and I will make sure Alicia calls you!

Copyright Melissa Mason Hoffman, 2009.  All content original unless otherwise noted.  Note: do not make real estate, financial, legal, or tax decisions without specific advice from the professional of your choice.