Tax Credit on VA Loans extending for Veterans
10/8/2010
The first time homebuyer's tax credit deadline has been extended through 2011 for military personnel and veterans of the U.S. Armed Forces. Potential VA homeowners can save up to $8,000 by taking advantage of the tax credit extension.
In the past month, interest rates for VA home loans have reached all-time lows making the housing market a buyers dream. With interest rates around 4.25% for a fixed 30-year loan, 100% financing (or no-money down) and an $8,000 tax credit, first time VA homeowners are receiving HUGE incentives to purchase a home.
HOW TO QUALIFY FOR THE TAX CREDIT?
Veterans and active military personnel must be purchasing their FIRST home to qualify for the tax credit. The first step is to contact an authorized VA lender and complete a preapproval letter. The preapproval letter will inform the potential homeowner of the MAX amount of money they qualify for.
If the buyer is single, their income must be no more than $125,000 per year to qualify. If the buyer is married, the couples combined income cannot be more than $225,000 to qualify. If veterans and military personnel's income exceeds the allotted amount they still may qualify for a partial tax credit. The cost of the home also cannot exceed $800,000 to qualify for the tax credit.
The buyer must be under contract to buy the home before April 30, 2011 to qualify for the tax credit. To start the process and find an approved VA lender contact LowVARates.com at 866-569-8272 or visit their web site at: www.lowvarates.com
WHO QUALIFIES FOR THE TAX CREDIT?
To qualify for the first times buyer's tax credit you must meet the following listed requirements:
-Must be a member of the U.S. Armed Forces or a spouse of a member
-Have served Extended Duty for at least 91 days between January 1, 2009 - April 30, 2010 (Extended Duty can also be inside the U.S. if you relocate at least 50 miles from your main residence)
QUALIFYING FOR A VA HOME LOAN
To qualify for a VA home loan, you must be military personnel or a veteran who has honorably served in the U.S. Armed Forces during war or peacetime.
Those serving during wartime for at least 90 consecutive days or have at least 181 consecutive days during peacetime are eligible for the VA home loan program. Service member who have or are currently serving in the Reserves or National Guard can also have entitlement. To find out if you qualify for the tax credit or a VA home loan, call LowVARates.com at 866-569-8272.
Owner of LowVARates.com, Eric Kandell, says that first time military and VA homebuyer's are in a great position.
"There has never been a better time for first time VA buyers to save thousands of dollars," Kandell said. "The VA home loan by itself is a fantastic advantage for veterans, but adding the $8,000 tax credit just sweetens the deal."
