Did you know that you CAN get the First Time Home Buyer Tax Credit even if you are doing a rent to own deal, aren’t a first time home buyer, have terrible credit and don’t qualify for a mortgage?
That’s right, you can still get it. Most people mistakenly think that you have to have perfect credit, get a mortgage, have never owned a home before and truly be a first time home buyer. Nothing could be further from the truth.
You can get the First Time Home Buyer Tax Credit of up to $8000 even if you have owned a hundred homes, have terrible credit, cannot get a mortgage and are doing a rent to own deal. How is this possible?
Simple, you just have to have a contract that is in compliance with the IRS Installment Sales Contract Guidelines, which, because we truly care about our clients, ours are. What are the other qualifications?
They are pretty simple and straight forward:
To claim the full credit of $8000 you must meet the following guidelines:
- Haven’t owned a home as a primary residence and lived in it for the last 36 months (you could have owned a hundred homes before but as long as you haven’t owned one as a primary residence AND lived in it in the last 36 months, you are qualified
- You cannot have individually made more than $150,000 or $225,000 if you are married filing jointly (don’t ever do this, ask me why)
- You cannot buy the home from an immediate family relative (because the IRS thinks if you do you are committing fraud to collect the tax credit)
- The home must be over $80,000 and under $800,000-The credit is equal to 10% of the purchase price of the home so if you buy a home under $80,000 you would get 10% of that amount
That’s it!
Additionally, if you have owned your own home as a primary residence and lived in it for the last 60 months, you can qualify for a tax credit of up to $6500.
A large majority of people actually qualify for the tax credit but don’t realize it because of the name, “First Time Home Buyer” which is a misnomer. It isn’t only for first time buyers.
Additionally, a large majority of people don’t know that you can really get it on a rent to own deal. The key here, again, is the appropriate contract structure that is in compliance with the IRS Installment Sales Contract Guidelines.
Want to hear the best part?
It is what is called a refundable credit which means that you get it in cash immediately. You do this by filing an amended return for your 2009 tax return. And before you ask, yes, you can file it on your 2009 return even though you bought the home in 2010. As soon as the IRS processes the amended return, voila, an $8000 direct deposit hits your bank account. How awesome is that?
The credit expires on April 30th so you only have 10 more days to secure a home with the right contract structure to qualify for the credit. So, don’t wait.
If we don’t presently have a home in inventory that works for you, we will be happy to get you one using our Custom HomeFinder Service.
If you weren’t fortunate enough to buy your home from us and you have an existing lease option or lease purchase contract, we can still help you get the $8000 tax credit. Simply sign up for our Contract Conversion and we can convert your existing contract to a contract that is in compliance and help you get the tax credit.
These contracts also enable you to legally deduct the payment you are making from your income on your tax return to help reduce your tax liability and increase your refund. You can also adjust your W-4 withholdings to increase your net take home pay. There are a myriad of benefits to using these contracts because you are legally classified as a home owner and have a bona fide sale in place. That’s what you really want, isn’t it?
So, if you haven’t already, complete our Enrollment Application and either select a Dream Home from one of our beautiful inventory homes or sign up for the Custom HomeFinder Service and we will go get one for you that matches your description.
As always, if you have any questions or comments, please leave them for me in the comment box below.
Don’t wait ’til it’s too late!
Get your new home and your $8000 tax credit today! Who knew you could do it with houses for rent to own!
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I am looking for a rent to own home in Ga, but havent had any luck finding one. If you can help me please do