First time military homebuyers, as well as long-time military homeowners who purchase a new home, may both be eligible to expand their homebuyer benefits.
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Military Homeowners Combine VA Loans with First Time Homebuyers Tax Credit

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First time military homebuyers, as well as long-time military homeowners who purchase a new home, may both be eligible to expand their homebuyer benefits. Military homebuyers may find themselves able to combine VA Home Loan benefits, with the special military considerations available to receive an extended First Time Homebuyer Credit. And that expands the benefits of homeownership for eligible veterans.

The First Time Homebuyers Tax Credit offers a rebate for military homebuyers; for first time homebuyers, the tax credit is up to $8,000; for long time homeowners purchasing a new home, the First Time Homebuyer Credit is $6,500.

The VA Home Loan Program offers the lowest mortgage rates, no downpayment, and a host of other financial benefits for homebuyers.By combining temporary homebuyer programs like the First Time Homebuyers Tax Credit with he solid and stable VA Home Loan benefits, military homebuyers can realize homeownership at the best net price now, and for years to come.

VA HOME LOANS NOW

The VA Fixed Rate Mortgage is the simplest way to purchase your home and know your set monthly payments for the next 15 to 30 years. In times of uncertainty, the VA Fixed Rate Mortgage can be a measure of financial security. VA Adjustable Rate Mortgages and VA Jumbo Loans are also options for military homebuyers who prefer flexibility along with the low interest rates and high homebuyer benefits of a VA Home Loan.

Whichever VA Mortgage option you choose, the VA Home Loan Program offers no downpayment mortgages available for qualified veterans and military servicemembers.

That means qualified veterans can purchase a home without putting any money down towards the sale price of the home, provided the sale price does not exceed the appraised home value. Veterans also don't need money towards closing costs or earnest money, which saves the military homebuyer even more upfront purchase costs.

EXTENDED DEADLINES FOR MILITARY TAX CREDIT

If you are civilian applying for the First Time Homebuyer Credit, you must purchase your principal residence in the United States with a contract to buy on or before April 30th 2010; closing date on or before June 30; and settlement date after November 6, 2009. But if you're military, your access to the First Time Homebuyer Credit is greatly extended. Active military or certain federal employees serving outside the U.S. get an entire extra year to buy a principal residence in the U.S. and qualify for the homebuyer credit. Eligible military homebuyers can enter into a binding contract to buy a principal residence on or before April 30, 2011, and close on home up anytime up until June 30, 2011.

First time homebuyers are eligible for the tax credit if you are married and have not owned, together or separately, another principal home within three years of your date of purchase on the new home. If this is not your first home purchase, you may still receive this First Time Homebuyer Credit. To be eligible, you and your spouse must have lived in the same home for a consecutive five years of the eight years from the date of the new home purchase.

HOW TO CLAIM THE FIRST-TIME HOMEBUYER CREDIT

To claim the First Time Homebuyer Credit on your tax returns, file a paper return (not electronic) and fill out Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, along with other documents that verify the home purchase. Also, attach a copy of the completed settlement statement, or a copy of the dated certificate of occupancy if the home is currently being built.

Long time homeowners claiming the First Time Homebuyer Credit should attach additional documentation from the mandatory five year consecutive period such as mortgage interest statements, Form 1098, homeowner's insurance, or property tax records. This will speed the verification process for the IRS and get your tax credit into your hands as soon as possible.



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