The financial hardship comes with buying a home for the first time can be eased with the first time homebuyer tax credit. It is a $5,000 tax credit which can give you a total tax rebate of $750. This certainly isn’t much but it’s better than nothing.
But straight up going and buying a home for the first time don’t make you qualify for this tax credit. The home you buy must meet the following requirements.
- The house is a single-family, mobile home, or a condo.
- It is under construction or an existing house.
- The house is registered under your or your partner’s name.
- You moved into the home within one year of the purchase.
As long as you did not live in another home owned by you or your partner in the four years, you can claim this credit. The first time homebuyer tax credit is as simple as that.
First Time Homebuyer U.S. Tax Credit
The first time homebuyer tax credit we explained above is for Canadians. If you’re looking for the American first time homebuyer tax credit, it is no longer on federal income tax returns.
However, some states still offer certain programs for first time home buyers. As of now in 2020, you cannot claim the credit but can benefit from the programs before you buy a house. For example, Florida offers a mortgage credit program where it allows borrowers to make low down payments.
If you can’t get a VA or an FHA mortgage loan, making a quick research on what your state offers to first-time homebuyers is a great way to cut certain costs. Same as the tax credits, the programs should have an income limit or certain requirements on your end. Make sure you qualify first before taking any action.
As for whether will we have the tax credit back or not, the IRS don’t seem to be working on such a thing. By any chance, if the tax credit comes back, you’ll be able to hear it from our site.