Obama Money for Houston Texas Real Estate

First-time home buyers who purchase any kind of home (new or resale) between the start of the this year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. For the purpose of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the homeowner.

The law defines “first-time home buyers” as a buyer who has not owned a principal residence during the three-year period prior to purchase. For couples this includes home ownership for both of the home buyers.

Any home that will be used as a principal residence will qualify. Single-family detached homes, attached town homes and condominiums, manufactured homes/mobile homes and houseboats meet this requirement.

Still better news, if you are buying a home in Houston, Texas you can use the $8,000 as down payment money. Not all states will allow stimulus money to be used directly for down payment. Call your Houston real estate specialist, and find out how this works in Texas.

Remember a tax credit is different than a tax deduction. A credit is equivalent to money in your hand. A deduction only reduces your taxable income.

The tax credit starts phasing out once a buyer reaches a certain income. For couples the income level is above $150,000 and single buyers the income level is above $75,000. Buyers will have to repay the credit if they sell their homes within three years. Of course, homes in Houston qualify for this program.

While most home buyers looking for homes in Houston are aware of the $8,000 tax credit for first-time buyers, many may not be aware of other government programs available. For example, there is a tax incentive for “going green.” To promote energy savings for Houston homes, these programs are designed to encourage energy-efficient improvements for modest income homes. Tax credits are offered to purchase new furnaces, energy efficient windows and doors, insulation and more.

According to some estimates Houston homeowners could save an average of $350 a year on heating and air conditioning bills. Oh! Get a tax credit too.

Other programs to promote Houston real estate are provisions to increase support for neighborhood stabilization. A projected $2 billion will be spent to help communities purchase and rehabilitate foreclosed and vacant properties.

Another thing to keep an eye on is plans being discussed by President Obama to help struggling homeowners before they have to default on their mortgage. Many owners of Houston real estate will appreciate this program.

This plan is to help borrowers that have not yet fallen behind on their payments and struggling to stay afloat. Details are still scarce at this point, however, reports indicate that approximately $50 billion may be spent to help homeowners prevent foreclosure.

While this is good news for individual homeowners, it will likely be good for Houston real estate as a whole. Assisting struggling borrowers should help stop the current wave of foreclosures. Estimates project them to reach over 2 million this year. This plan will help stabilize home prices.