Guest Post by:
James Kelley blogs on veteran’s issues, real estate and finance across American markets at VA Benefit Blog .He also works with VA Mortgage Center, proudly serving American military families as a leading national VA lender.
Due to new, stringent practices many lenders have implemented since the credit crisis of 2008, many veterans are finding it harder and harder to get VA loans for their new home. But the news isn’t all bad for America’s servicemen and women.
For first time military homebuyers who have been abroad, good news actually awaits: they still have a full year to qualify for up to an $8,000 tax credit when buying a home. The deadline has passed for all other homebuyers except U.S. military members who have served overseas for at least 90 days sometime between Jan. 1, 2009 and May 1, 2010 – this tax credit has been extended specifically to account for their being away and unable to look for a home. If you or your spouse served abroad between those dates, don’t pass up this opportunity as you look for your new Oregon home.
To qualify for the full $8,000 tax credit, you must also be considered a first-time homebuyer. This means that you are looking to buy your first primary residence of the past three years. If you are considered a long-time resident – meaning that you’ve owned and lived in the same house for five of the past eight years – you can qualify for up to $6,500 in credit. Other requirements include:
- Home purchases cannot exceed $800,000
- Incomes filed jointly (you and your spouse) cannot exceed $225,000
- Single-filed incomes cannot exceed $125,000
Some allowances may be made on a case-by-case basis for some veterans who are above the annual income requirements
The credit extension lasts until April 30, 2011 for you to put a house under contract and until June 30, 2011 for you to close all purchases. Finally, some veterans have been concerned that they may lose the credit if they are forced to move from their new home due to redeployment. However, the Internal Revenue Service has exempted those who are redeployed from having to repay the credit.
And, while it has become harder to obtain, veterans still have the opportunity to couple their tax credit with VA financing. If you’re looking to finally own your own Oregon home, you ought to take advantage of this opportunity as soon as possible. Contact an agent or lender today and take the first step toward owning your own home.