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This program went into effect for home purchases done after Nov 6, 2009. If you’ve owned and lived in your main residence for 5 out of the last 8 years and you purchased a different house to be your primary residence between Nov 7, 2009 and April 30, 2010. You don’t have to sell the house you live in now but you do have to live in the house you’re buying.
Your closing statement must indicate dates between these times.
The closing must occur no later than Jun 30, 2010.
The credit is for up to 10% of the home value and capped at $6500. Any homes over $800,000 don’t count.
Basically, you must provide the HUD1 statement and property tax records to prove the 5 out of 8 years previous ownership. Also, you can’t sell the home within 36 months or you have to pay back the credit. And if you’re single you must make less than $125,000 or $225,000 if married filing joint.
It can work for mobile homes and newly constructed never lived in homes. Full details of documents required are here.
Let me know what you think and ask any questions in the comments section.
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