Colorado Springs CO Real Estate Blog

Check out this new Single-family property that I just posted on my Web site. It is at 5413 Plumstead Dr. in Colorado Springs. This Single-family property has 4 bedrooms and 4 baths.

Check out this new Single-family property that I just posted on my Web site. It is at 15837 Dawson Creek Dr. in Monument. This Single-family property has 4 bedrooms and 3 baths.

Check out this new Single-family property that I just posted on my Web site. It is at 645 W. Caribou Dr. in Monument. This Single-family property has 5 bedrooms and 3 baths.

Check out this new Single-family property that I just posted on my Web site. It is at 9065 Bellcove Cr. in Colorado Springs. This Single-family property has 4 bedrooms and 4 baths.

Check out this new Single-family property that I just posted on my Web site. It is at Granite Rd. in Florissant. This Single-family property has 3 bedrooms and 3 baths.

Check out this new Single-family property that I just posted on my Web site. It is at 1955 Leoti Dr. in Colorado Springs. This Single-family property has 3 bedrooms and 3 baths.

Check out this new Single-family property that I just posted on my Web site. It is at 11945 Columbine Hills Rd. in Colorado Springs. This Single-family property has 3 bedrooms and 4 baths.

Check out this new property that I just posted on my Web site. It is in Colorado Springs.

On July 30th, 2008, President Bush signed the Housing & Economic Recovery Act of 2008 (H.R. 3221).  Part of this housing bill created by Congress includes the First-time Homebuyer Tax Credit.  This tax credit comes as a welcome benefit for select home buyers currently considering purchasing a home here in Colorado Springs or across the country.  Despite the welcome incentive for “first-time” homebuyers there are many questions regarding this legislation that need to be understood by the public.  The tax incentive states that eligible “first-time” home purchaser’s can receive a tax credit of 10% of the home purchase price up to a maximum of $7,500.  Basic eligibility includes “first-time” homebuyers who purchase a home as their principal residence on/after April 9th 2008 - before July 1st 2009.  First-time homebuyers are defined in this bill as an individual (to include the purchaser’s spouse) who have not had ownership interest in a principal residence in the previous three years.  Eligibility is also derived from personal income based on your tax filing status as follows: individual filing making less than $75,000 per year and those who file jointly making less than $150,000.  The tax credit also includes a phase out scale which reduces the amount of the tax credit gradually up to the maximum income levels of $95,000 for individual filing and $170,000 for joint filling. 

So what’s the catch?  You have to pay back the tax credit…..  The government is not offering a “free” cash incentive but rather a interest free loan as many have called it.  If you are eligible and decide to take the tax credit you will be required to start paying it back two years after the credit is claimed.  The payback rate is extended over 15 years at an annual amount of 6.67% of the tax credit that you received or approx. $500/year for the full $7,500 credit.  If you sell your home before this 15 year repayment period ends, the seller is required to immediately pay back the remaining balance of the credit.  So, if you have to pay the credit back why is this a good incentive?  Because it is interest free.  Although this tax credit incentive is not ideal for everyone, if it used properly it can be a nice benefit.  How often can you receive what is essentially an interest free loan for $7,500?  The value of $7,500 today is worth more than the value of $7,500 in the future as a result of inflation.  It is a possibility to use this tax credit to earn interest over a period of time rather than pay interest over time to help better your future financial situation.

Depending on your individual situation, if used properly this tax credit could be a nice benefit to your financial situation.  The information that was provided are just basic details of the First-time Homebuyer Tax Credit that are subject to change and there are more details that were not provided in this blog so please contact your tax advisor for more details and to see if the credit would be beneficial for you.  Also, please visit http://www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions and click on the, First-time homebuyer tax credit chart and Frequently asked questions about the first-time homebuyer tax credit, links for more information.        

Check out this new Single-family property that I just posted on my Web site. It is at 2805 Meadow Run in Colorado Springs. This Single-family property has 6 bedrooms and 6 baths.