Tax Credit

Posted by Angela Lanfranco

July 2, 2009

How Can the $8,000 Tax Credit Help First Time Denver Home Buyers?

The federal government has increased the proposed tax credit included in the stimulus plan from $7,500 to $8,000 and has concluded that, as long as our local Denver first time home buyers meet the necessary qualifications, the credit will not have to be paid back. This tax credit could have a huge impact on 1st time home buyers around the country and here in Denver, enhancing their ability to purchase their first home to help boost this sluggish housing market.

Key Points to be Aware Of:

The credit is only for first time homebuyers in the United States. If you are in the Denver area and have never owned a principal residence within three years prior to the date of purchase on your intended property, then you qualify for the tax credit. If you are married, the credit takes into consideration both parties to the purchase. If you haven’t owned a home in the last three years, but your spouse has, then neither of you qualify for the tax credit.
The total credit allotted ranges from 10% of the home purchase price up to $8,000.00. and is available any 1st time homebuyer home purchase made between January 1, 2009 and December 1, 2009.
Denver first time home buyers also need to be aware that the federal income limits for single people is $75,000 and $150,000 for married couples.
The stipulated income levels is expounded for Denver first time home buyers. The actual limits state that the modified adjusted gross income, MAGI, can cause the credit amount to be reduced. If an individual Denver first time home buyer makes more than $95,000, the credit is reduced to zero. The same goes for married Denver first time home buyers whose MAGI exceed $170,000 a year. The credit is reduced proportionally for anyone between those two limit caps.

There is obviously a need for this credit to help boost home purchases in the current market, but keep in mind the $8,000 tax credit for Denver first time home buyers needs to adhere to the above guidelines to be of use. Visit or give GoldenLenders a call today for more information.

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