It’s official! The $8,000 tax credit for first-time Virginia Beach homebuyers was signed into law yesterday by President Obama.

It is not the $15,000 credit that was proposed by the House of Representatives, but it is a definite improvement over the $7,500 low interest loan that was in last fall’s legislation. Who qualifies:

First-time Virginia Beach homebuyers who purchase this calendar year get an $8,000 tax credit which does not have to be repaid like a similar measure last year. This phases out for people making more than $75,000 individually or $150,000 jointly. “First-time homebuyer” is defined as someone who has not owned a home for the past three years.

The purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

This legislation does not help the first-time Greenville homebuyer who doesn’t have the cash for a down payment as you have to have closed the deal to qualify. It is more of an $8,000 discount on the price of the home and can give home buyers a cushion for unexpected costs during the first years of homeownership.

Are you a first-time Virginia Beach homebuyer? Give me a call! I am glad to discuss how this new law effects you personally.

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