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19
Feb

Before you know it the Homebuyer Tax Credit that was extended and expanded last November will be gone again. Although the credit applies to buyers who close on the purchase by June 30, 2010, taxpayers must purchase or be locked into a contract to close before midnight on April 30, 2010.

That’s only about 8-9 weeks away which may sound like plenty of time, but it’s not. According to the 2009 National Association of Realtors® Profile of Home Buyers and Sellers:

Buyers searched a median of 12 weeks and viewed 12 homes.

So, if you want to buy a home and could use an $8,000 gift from Uncle Sam, then you need to get it in gear. Fortunately, Rent2ownMarket.com’s Seller Financing Program can help.

First, just in case you didn’t realize it, our Seller Financing Program IS a eligible means of claiming the $8,000 First-Time Homebuyer Tax Credit.

The IRS has specifically addressed this issue on their website. It outlines the buyer must meet the benefits and burdens of ownership and includes 7 test points. Here is an excerpt from the Q&A page at www.irs.gov:

Question: Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer’s payment obligations?

IRS Answer:
If the taxpayer obtains the “benefits and burdens” of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include:

1)  the right of possession,
2)  the right to obtain legal title upon full payment of the purchase price,
3)  the right to construct improvements,
4)  the obligation to pay property taxes,
5)  the risk of loss,
6)  the responsibility to insure the property, and
7)  the duty to maintain the property.

Source: First-Time Homebuyer Tax Credit Questions and Answers – Basic Information at: http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Of course, the home buyer must still meet the other criteria such as not having owned another principal residence at any time during the three years prior to the date of purchase.

Now that we’ve got that straight, here’s the really good news… If you are able to rent, there’s a very good possibility that you can actually own using our Seller Financing Program. So, rather that wasting you money on rent, why not get all the tax advantages, and wealth building advantages of home ownership including the First-Time Homebuyer Tax Credit? Our program has no minimum qualifying criteria. Each application is subject to the individual seller’s approval and we are happy to see most applications approved.

Category : Buyers

2 Responses to “Homebuyer Tax Credit Will Be Gone Soon!”


Marianne Bowen July 21, 2010

I would like to find out more about seller financing program.
Can you e mail me some information and guidelines on Seller Financing?

Marc Blackwood July 21, 2010

Sure, Marianne, I have emailed you some additional information. Please give me a call if you would like to discuss further.