Colorado Springs Real EstateTop Realty Group

A Team of Colorado Springs Realtors with Top Realty Group
Colorado Springs, 2011-2012

Government Regulations Create a Giant Tax Break for America's Home Buyers

Don't Buy a Home without this Tax Credit*

Special Report

*Eligibility requirements apply.

Christine Rucks

Since the expiration** of the recent $8,000 Home Buyer Tax Credit, America has struggled to achieve the number of home sales vital to our economic recovery. As it turns out, Congress has provided for a little known home buyer tax credit that will help Americans buy their own home.

**Military Members - The $8,000 military home buyer tax credit has been extended for military personnel who spent 90 days or more outside the United States during the period between January 2009 and April 30, 2010. Contact us for more information about this tax credit.

A Little Known Secret

Qualifying American home buyers have been eligible for this tax credit for many years. In recent years, it has been overshadowed by the now expired $8,000 Home Buyer Tax Credit. The purpose of this "Special Report" is to alert America's home buyers to the availability of this money saving tax credit program.

This tax credit sets up a win-win situation for home buyers and the economy, by contributing to putting Americans back to work again. It boosts the housing industry and, by reducing their taxes, gives home buyers more expendable income to put back into the economy or their own savings. It's all good!

The Tip Off

We began investigating this tax credit program when we were tipped off by a mortgage loan adviser. We uncovered a great recent success story of a Colorado first time home buyer, Christine Rucks, who used this tax credit program to buy her home. We discovered Christine's story on YouTube and decided to share her story in this report. See Christine Rucks share her story on YouTube.

Although the latest worldwide recession appears to be coming to an end, it has wreaked havoc on the housing industry and home ownership. This tax credit will help improve the housing market, and the ability for Americans to own their own home. It is a win-win situation for the American economy and the American home buyer.

The tax credit helps put Americans back to work be providing affordable home ownership to home buyers. If you are an eligible home buyer, DO NOT buy a home without this tax credit.

Simply fill out this short form to determine if you are eligible.

An Example

Here's an example of how this tax credit can make buying a home affordable for you:

  • You obtain a mortgage loan of $250,000 at 6% for 30 years with monthly principal and interest payments of $1,499 and a tax credit rate of 20%.
  • In the first year, you pay a total of $14,916 of interest on your mortgage loan. Because you have utilized this program, you receive a federal income tax credit of $2,983 (20% of $14,916). This credit is deducted dollar for dollar from what you would normally have paid in income tax.
  • The remaining 80% of your mortgage interest, or $11,933, remains deductible as an itemized income tax deduction.
  • You also deduct your property taxes.
  • To receive the immediate benefit of your tax credit, you would file a revised W-4 withholding form with your employer to reduce the amount of federal income tax withheld from your wages and increase your take home pay by $249 per month ($2,983 divided by 12).
  • By applying the increase in your take home pay of $249 toward your monthly mortgage payment of $1,499, your effective monthly payment would be $1,250 ($1,499 minus $249).

You can also use the tax credit to qualify for a larger mortgage loan to purchase a higher cost home. Owning a home also allows for the deduction of local property taxes. Home buyers will be able to use the tax year throughout the duration of their mortgage. This can result in an overall tax savings of $30,000-$50,000 or more!

See another example.

Click here to find out if you're eligible for this tax credit now!

Mortgage types that qualify:

  • VA - Veterans Administration Mortgages
  • FHA - Federal Housing Authority
  • Conventional - Fannie Mae, Freddie Mac, and others
  • CHAFA - Colorado Housing Finance Authority
  • Miscellaneous other programs

There are some personal income and total loan amount restrictions.

Summary of benefits to home buyers:

  • Reducing your effective mortgage interest rate.
  • Reducing your Federal Income Taxes by $30,000, $40,000, even $50,000 or more over the life of the loan.
  • Reducing the amount of taxes withheld, thereby increasing your spendable income.
  • Allowing buyers to qualify for a larger mortgage amount and higher priced home.
  • Allowing home buyers to also continue the normal tax deduction for interest paid on their mortgage.
  • Tax credit continues to save tax money every year.

The Downside

We could find no downside to using this money saving program. If you are eligible for this tax credit, DO NOT buy a home without it!

Click here to find out if you're eligible for this tax credit now!

Top Realty Group