First-Time Home Buyer Credits

❗️We have had questions about the $15K First-Time Home Buyer Tax Credit & $25K Grant, so we are here with answers!!❗️

We are in touch with some of our local lenders and this is what we know so far!

$15K Tax Credit Info:

• It has NOT passed through Congress yet.

• The tax credit isn't a deduction - it is "refundable" meaning it can increase the annual tax refund. According to the bill's current text, homes purchased after December 31, 2020 could qualify. 

• Qualifications for the tax credit as it is currently written:

       1. Not owned a home in the last three years.

       2. Modified Adjusted Gross Income would need to be 160% or LESS than the area's median income.

       3. the home's purchase price must be 110% or LESS than the local median

• Buyers wouldn't need to repay the funds (like previously in 2008), but the would need to keep the home as their PRIMARY residence for at least four years. If they sell the home before then, that would mean paying back a portion of the credit.

$25K Home Buyer Grant Info:

• It has NOT passed through Congress yet.

• Similar to existing down payment assistance (DPA) programs

• To be eligible, buyers can't make more than 120% of the local median income

• Grant recipients can't have owned a home in the last three years AND they have to be a first-generation buyer. (Meaning their parents and/or parents of the co-buyers cannot have owned a home before)

We will continue to keep you guys updated on information as we get it from our trusted local lenders. Our agents will be prepared and ready to go if/when this all gets passed!

Last Updated: 4/30/2021