How is first time home buyer credit calculated.?

Answer 1

Best Answer - Chosen by Voters

Easy. 10% of the purchase price, up to $8,000. Nothing complicated.

Answer 2

it is 2% of the purchase price up to $8000

Source(s):

I am a loan officer

Answer 3

Thomas is correct: 10% of the purchase price, up to an $80,000 primary residence. Plus, there is a declining amount based on your income.

"The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit."

John Scott Smith
President
www.MyFHA.net

Twitter: @JohnScottSmith

Source(s):

http://www.realtor.org/HOME_BUYERS_AND_SELLERS/2009_FIRST_TIME_HOME_BUYER_TAX_CREDIT