With Tax Day 2010 behind us, Americans can begin the countdown until April 15, 2011. For millions, the passing of this year's taxes closes the door on the homebuyer tax credit but for hundreds of thousands of qualified service members, the deadline is more than a year away.
Members of the Foreign Service, Armed Forces or intelligence community assigned to official extended duty have until April 30, 2011 to sign a binding sales contract for a home. The deadline to close that deal is July 30, 2011.
Given all the time to find a home, prospective homebuyers are sure to check out dozens of markets, but should not overlook Seattle. Sandwiched between Puget Sound and Lake Washington, Seattle is a beautiful city for a veteran to call home. And with Naval, Air Force, as well as Coast Guard bases, Seattle is already home to a thriving military community.
There are a few basic terms homebuyers must meet to qualify. No home's purchase price can exceed $800,000. First-time homebuyers and their spouses cannot have owned a home in the last three years. Individuals and married couples with an annual income of at least $125,000 or $250,000 respectively cannot qualify for the tax credit.
Repeat buyers may qualify for a return of up to $6,500, but they must have lived in their former residence for five of the last eight years. All other requirements remain the same.
Even if they have are using a loan guaranteed by the Department of Veterans Affairs, members of the military can still qualify for the homebuyer tax credit. Should qualified service members be forced to sell or move from a tax credit home within three years of buying it, they are exempt from being recaptured.
Robert Stretch works in content development for VA Mortgage Center.com. Interested in applying for a VA loan? Visit the VA Mortgage Center website today.