For instance, the Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, expanded the limits and deadlines for first-time homebuyer credits.
Before they were famous, many truly influential men and women started by serving their country in the US military or grew up in military families.

Homebuyers Credit for the Military

Posted:

Is now the right time for you to buy your military family home? Maybe. In addition to choosing a VA mortgage which offers active military and veterans the VA's lowest mortgage rates and no downpayment requirements, the Federal government often makes if even more advantageous for you in the military to buy a new home, by offering special homebuyer credits and incentives.

WORKER, HOMEOWNERSHIP AND BUSINESS ASSISTANCE ACT

For instance, the Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, expanded the limits and deadlines for first-time homebuyer credits; authorized the homebuyer credit for long-time homeowners who buy a replacement principal residence; and raised the income limitations so more homeowners could qualify for the homebuyer credit.

But that's not all; the Worker, Homeownership and Business Assistance Act of 2009 also addressed the needs of military homebuyers, with special benefits for members of the military and certain other federal employees.

TIMELINES AND DEADLINES BENEFIT MILITARY HOMEOWNERS

Under the expanded Worker, Homeownership and Business Assistance Act, a civilian homeowner qualifies for the credit if he buys, or enters into a binding contract to buy, a principal residence on or before April 30, 2010 and closes on the home by June 30, 2010. (For home purchases in 2010, the option is to claim the homebuyer credit on either 2009 or 2010 tax returns).

But if you're military, your deadlines to purchase a home and receive the homebuyer credit are expanded even further.

MORE TIME TO BUY YOUR MILITARY HOME

The Worker, Homeownership and Business Assistance Act allows members of the military and certain other federal employees serving outside the U.S. an extra year to buy a principal residence in the U.S. and still qualify for the homebuyer credit. Eligible military new homebuyers are thus able to buy or enter into a binding contract to buy a principal residence on or before April 30, 2011, and close on the purchase of that home up until June 30, 2011.

The extended homebuyer credit deadline applies to members of the uniformed services, members of the Foreign Service and employees of the intelligence community, and any military individual (and, if married, the individual's spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days beginning after Dec. 31, 2008, and ending before May 1, 2010.

HOMEBUYER CREDIT REPAYMENT WAIVED FOR MILITARY

The homebuyer credit repayment (recapture) is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community, when the home is sold or stops being the principal residence after Dec. 31, 2008 as a result of government orders for qualified official extended duty service.

That means the Worker, Homeownership and Business Assistance Act of 2009 credit is allowable even if the home was no longer a principal residence due to military relocation or military orders, during the year of purchase.

BUYING A NEW HOME? YOU MAY GET CREDIT, TOO!

Sometimes even homeowners who buy a replacement principal residence can claim a homebuyer credit. For example, the Worker, Homeownership and Business Assistance Act of 2009 allows a credit of up to $6,500 (up to $3,250 for a married individual filing separately) for the purchase of a replacement home. To be eligible, you must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home was purchased.

HIGHER INCOMES ALSO QUALIFY FOR HOMEBUYER CREDIT

Homeowners with higher incomes may also qualify for a homebuyer credit. The Worker, Homeownership and Business Assistance Act of 2009 raised income limits for homes purchased after Nov. 6, 2009, and phased out limits for individuals with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. Check with your VA mortgage broker to find out what homebuyer credits may apply to you and your military situation, and be fully prepared to enjoy and financially benefit from your next new-homecoming experience.



RELATED ARTICLES:


Sponsor:

VA Loans for Veterans
Complimentary VA loan pre-approvals will give you the comfort you need to shop for your home with confidence. VA refinance loans available.


VA Home Loans

Military Hub is not a government website and is not affilitated with any branch of the U.S. Military.


Support Our Troops:

Semper Fi Fund
The Semper Fi Fund provides financial assistance and support to service members and their families.
IAVA - Iraq and Afghanistan Veterans of America
IAVA is the nation's largest nonprofit, nonpartisan organization representing veterans and their families.
Team Rubicon
Team Rubicon unites the skills and experiences of military veterans with first responders.
Pat Tillman Foundation
The Pat Tillman Foundation invests in military veterans and their spouses through educational scholarships.

About Military Hub
Privacy Policy
Contact / Advertise

Copyright © 2008 - 2017
Advertise Military, LLC
All Rights Reserved

Disclaimer: MilitaryHub.com and MilitaryRates.com are private websites that are not affiliated with the U.S. Department of Veteran Affairs, any U.S. government agencies, or any U.S. military branches. Our sites contain basic information about veteran benefits, pay tables, current events, and news for active duty military personnel, military veterans, and their families. You can find additional information on these topics at the official website for U.S. Department of Veteran Affairs.