16th Feb, 2009

Denver Homebuyers Benefit from Stimulus Bill

The American Recovery and Reinvestment Act will help some new buyers of Denver CO homes with tax relief if their Denver real estate is purchased between January 1, 2009 and before December 1, 2009.  Coupled with government-backed loan limits of $368,000 for homes in the Denver metro area and low interest rates, first-time buyers can more readily take advantage of the great selection of Denver Colorado real estate that is now on the market.  A proposed new FHA-backed limit of $406,250 is also on the table.

The “stimulus bill” legislation only applies to first-time homebuyers, however.  In the strict definition of “first time,” the purchaser and the purchaser’s spouse may not have owned a principal residence in the three years prior to purchasing this real estate in Denver

Buyers must purchase these Denver homes for their primary residences.  The good news is that any type of primary residence qualifies, including single-family homes, condominiums, co-ops, and townhouses.  Another perk inserted into the legislation allows purchasers to utilize revenue bond financing. 

Purchasers may reduce or eliminate income tax liability for the year of the purchase.  The qualified homeowner may receive as much as $8,000 as a tax credit.  Any unused amount of tax credit will be refunded to purchaser after the tax return is filed.  And these monies do not have to be repaid.  However, if the home is sold within three years of purchase, the entire amount of the credit will be recaptured by the government upon the sale of the property.

Income limits will restrict some first-time homebuyers.  Individuals with an adjusted gross income of no more than $75,000, or $150,000 on a joint return, can access the full amount of the credit.  The benefits phase out above caps at $95,000 for a single filer, and $170,000 for a joint return.

The legislation benefits will be applied to purchases retroactive to January 1, 2009 and continuing to December 1, 2009.

For more information about farms, horse properties, and real estate in the greater metro area, call Michael Paul of Realty Oasis at (303) 268-6052.

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