Eastside Real Estate Professionals and Community Partners Team Up to Raise 1 Million Dollars for Local Residents.

 

In an effort to pump our local economy and help area renters become homeowners, Windermere Real Estate/Northeast, Inc. and Cobalt Mortgage have partnered with local community businesses to help put $1 million back into Eastside communities by helping new home buyers receive the $8,000 Government Tax Credit.  

This goal will be accomplished by providing education and assistance concerning the purchase and closing of a home to at least 125 first-time homebuyers by November 30 of this year.  A free seminar will be held at Lake Washington Technical College on Saturday, September 26th at 10:00 am.

In February, President Obama signed into law the American Recovery and Reinvestment  Act of 2009. One provision of this legislation is the Homebuyer Tax Credit, a reimbursement of up to $8,000 available to first-time homebuyers. While this credit has been embraced by many Americans since its passage, a major stumbling block to its full utilization persists.

Lack of Homebuyer Awareness
According to a survey released by the National Association of Realtors, nearly 50 percent of all homebuyers were unaware that a tax credit of up to $8,000 currently exists for qualifying parties. Of those Americans actively shopping for a home, fewer than one in five knew about the credit and planned to use it when buying a home. 

Another area of misunderstanding concerning this source of financial assistance is that the credit can be applied to homebuyers’ 2008 federal income taxes. This puts the credit back into their hands this year’ assisting people today, which could prompt many to buy while the credit is available. The tax credit is also refundable, meaning that buyers with little or no federal income tax to offset are eligible to receive a check for the difference between their tax offset and the credit amount calculated for their new property.

Tax Credit Calculation and Deadline
The tax credit for a given property is based on 10 percent of the property’s sale price, with a maximum credit of $8,000. For example, a buyer who purchases a home for $100,000 is eligible for a tax credit of $8,000. A home purchased for $60,000 qualifies for a tax credit of $6,000. The final day to take advantage of the credit is November 30, 2009; all qualifying transactions must close on or before that date.

Qualifying Criteria for Tax Credit
Individuals who have never owned a home as well as those who haven’t owned one during the past three years are eligible for this year’s Homebuyer Tax Credit. The modified adjusted gross income for a member of either of these groups is limited to $75,000 for single taxpayers and $150,000 per married couple. Individuals whose earnings exceed these amounts may be eligible for a partial credit and should contact their accountants for additional information. Program enhancements continue to be released; interested parties should email info@425homebuyer.com for information.

Windermere Real Estate, Cobalt Mortgage and local area businesses are working diligently to bring the  free homebuyer-education seminar to area residents.  This educational forum, to be held at The Lake Washington Technical College, is intended to assist individuals and families in the home-buying process as well as improve the area’s housing market.