More realistic home prices, interest rates at 50-year lows, available mortgage money to qualified buyers and a tax credit (up to $8,000) for eligible first-time home buyers. It’s a good time to buy in Bergen County, NJ.




On February 17, 2009, President Barack Obama signed into law H.R. 1, the American Recovery and Reinvestment Act of 2009. Included in that legislation are modifications to the Homebuyer Tax Credit passed in July. First-time homebuyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009 can now take up to an $8,000 tax credit, reducing their income tax liability.




Any individual or household that hasn’t owned a home for at least three years is eligible. If filing as a household, both parties must meet the first-time buyer criteria. The home must be a single-family unit (house, condo, co-op), a primary residence and be located in the United States. Income limits are $75,000 for individuals and $150,000 for joint filers. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit, but on a reduced basis. The same applies to joint filers earning up to $170,000.



The actual credit amount is equal to 10 percent of the home purchase amount, up to a maximum of $8,000. First- time buyers who meet the above criteria and who purchased their home on or after January 1, 2009 are eligible for the deduction on their 2009 tax return, provided the purchase is made prior to December 1, 2009. Authorization for the credit expires on December 1, 2009. The new legislation does not require first-time buyers to pay the credit back. However, the full credit amount is recovered at the time of sale if the home is sold within 3 years.