What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000.  This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.  

It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members.  Please consult with your tax advisor for more information.  Also see IRS Form 5405.

What is the definition of a principal residence?

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%).  The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling.

If you are interested in purchasing a home and qualify for either the First Time Homebuyer or the Move Up/Repeat Buyer Tax Credit, feel free to contact one of our Home Loan Specialist for more information or to get prequalified for your loan.  Remember, to take advantage of the credit, a purchase agreement must be signed by April 30, 2010 and the closing documents signed by June 30, 2010.