May 26, 2015
A reader asks, “Is the tax credit still available to 1st time new home buyers? If not, are there any other credits available that can help new home buyers? Will I be considered a new home buyer if I purchased a home just over 5 (2010) years and attempt to purchase a new one in 2015?”
We can’t give out tax advice, as we aren’t tax professionals, so it would be necessary to contact the IRS directly to learn about any homebuyer-related tax credits that might be available for a given tax year. Tax law changes quite frequently and what was legal last year may not be allowed this year due to legislation, expiration of government programs, or other changes.
That said, we can report that it appears that, based on a search of the IRS official site, that the tax credit mentioned in the reader’s question is no longer available. This program was open to qualifying borrowers who purchased a home between certain dates from 2008 to 2010.
There were restrictions on the program including an occupancy requirement, and borrowers generally had to repay the tax credit at a later time, making the program essentially a no-interest loan for those who choose to take advantage of it.
You can read the entire text of the IRS rules for this first-time homebuyer credit at the IRS official site.
Borrowers who are looking for state or local first time home buyer credit programs would need to check with their local agencies to see what options might be open to them, and you can also have a look at the FHA official site State Information page to see if any programs are linked to from there. You can also call the FHA directly at their toll-free number (1-800 CALL FHA) for assistance in getting referred to a local housing counselor who may know if any such programs exist near you.
Do you have questions about FHA loans? Ask us in the comments section. All comments are held for review.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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