Columbia SC Real Estate and Homes for Sale

There may be some help on the horizon for First Time Home buyers in the Columbia SC Real Estate market.  President Bush signed the new Housing and Economic Recovery Act of 2008 back in August, but it takes affect October 1st. The good news is that the new law provides a Tax Credit for qualified First Time Home buyers purchasing a Columbia SC Real Estate Home. 

First off, What is a first time home buyer as this law states?  A first time home buyer is a buyer who has not purchased a home in the past 3 years.

The first time home buyer tax credit is available to Columbia SC Real Estate purchasers who purchase their house between April 09, 2008 and July 01, 2009.  The allowable credit amount is 10% of the purchase price up to a maximum $7,500. People who file singly  with modified adjusted gross incomes up to $75,000 are eligible for the tax credit. Married couples with adjusted gross incomes up to $150,000 are eligible.  Therefore, if you make under $75,000 a year and file alone, or you and your spouse make under $150,000 a year, and you file jointly, you are considered eligible. Therefore, if you purchase a Quail Valley Columbia, SC home for $150,000, you will only get the $7,500.

Please note this, this is a temporary tax credit.  This tax credit will be recaptured (you will have to repay it) up to the next 15 years while you own the house, or when the home is sold. 

This credit provides incentives to purchasers who are first time home buyers to purchase a home.  It recognises that there is a problem with the market, and it is an attempt to help bring back the market, as well as provide home ownership to first time home buyers. 

Another provision of this bill is FHA Modernization.  Yes, its a big word.  More or less, the FHA is increasing the insured loan amounts up to 115% of the average of areas, up to $625,000.  This alone will allow the FHA to guarantee $300 Billion of loans made to the Columbia SC Real Estate market, as well as the rest of the United States as well.

As well, through the FHA Modernization, the FHA has increased its down payment from 3% to 3.5%, as well as gotten rid of the majority of down payment assistance programs such as Nehemiah .

All in all, this bill was made to be a temporary stimulus providing incentive to buyers looking to purchase a home to go ahead and do it.  What more do you need?