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Home Purchase Tax Credits
Reinvestment and Recovery Act First-Time Homebuyer Tax Credit
This tax credit provides an $8,000 for first-time home buyers who have not owned a home in the last three
years and complete there principal home purchase before December 1st, 2009. If the eligible purchaser’s total tax liability is
less than the $8,000 credit, the IRS will issue a tax refund for the difference. There is an income restriction
of $75,000 for single filers and $150,000 for married filers.
This tax credit may be claimed on either your 2008 or 2009 income taxes
(you may extend the filing of your 2008 income-tax
as late as October 15, 2009 by filing an extension.
California New Home Purchase Tax Credit
This tax credit is available for buyers who purchase new homes for their principal
residence between March 1, 2009, and before March 1, 2010.
The home must never have been occupied and the buyer must reside in the new home for at least of two years immediately following the purchase.
Applications will be reviewed on a first-come, first-served basis and are only available until a total of
$100,000,000 has been allocated. The credit may not exceeds the current year net tax and any unused credit may
not be carried over to the following year.
About FHA Loans
Federal Housing Administration (FHA) loans are loans offered by a
conventional lender that are insured by the
Department of Housing and Urban Development Development (HUD)
FHA loans are attractive to buyers because they require lower down payments of as little as 3.5% and are available to buyers with
less than perfect credit. In addition, FHA loans allow the seller to contribute up to 3% to pay for the buyer's closing costs.
HUD also offers a new 203(k)
Streamline Program for
financing an additional $35,000 for repairs or home improvements before moving in. FHA loans require the buyer pay a
monthly Mutual Mortgage Insurance (MMI) premium of 0.5% annual percentage rate APR plus and upfront mortgage insurance premium of 1.5%
which may be financed in with the loan.
Home Purchase Cost Estimator
The estimate provided here is only to provide a general overview of the benefits of home ownership and not to
intended to provide specific information about your own particular situation. Please consult your tax
and loan
professional for specific information about how financing and taxes will effect you
regarding your home purchase.
| Home Price: |
|
| First-time Home Buyer: |
|
| Seller Paid Closing Costs (3%) |
|
| Down Payment: |
|
| Loan Amount: |
$289,500
|
|
|
Closing Costs
| Down Payment Amount: |
$10,500
|
| Escrow and Recording Fees: |
$1,100
|
| Lender's Title Insurance: |
$495
|
| Home Inspection: |
$350
|
| Home Owner's Insurance: |
$910
|
| Loan Processing Fees: |
$1,500
|
| Loan Points (1%): |
$2,895
|
| Loan Points (1%): |
|
| First-time Buyer's Tax Credit (Federal) |
($8,000)
|
| Seller Assisted Closing Costs (3%): |
($9,000)
|
| Total Closing Costs (After Tax Credits): |
($95) |
Monthly Payment
| Mortgage Payment (4.75%
Interest Rate): |
$1,510 |
| Prorated Property Taxes (1.50%
Property Taxe Rate): |
$375 |
|
MMI
or
PMI
Mortgage Insurance (0.50%
Rate): |
$121 |
| Total Montly Payment |
$2,006 |
Income Tax Deduction
| Monthly Mortgage Interest (1st Month): |
$1,146 |
| Prorated Property Taxes (1.50%
Property Tax Rate): |
$375 |
| Private Mortgage Insurance (0.5%
PMI Rate): |
$121 |
| Monthly Total Tax Deduction |
$1,642 |
| Monthly Tax Benefit
(31.0% Fed/State Tax Bracket):
|
$509 |
| Net Monthly Payment After Taxes |
$1,497 |
|