Is there anyway for a home buyer to access the money alloacable to the credit sooners than waiting to file their 2008 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downnpayment. Buyers should adjust their withholding amoun ton their W-4 via their employer or through their quarterly estimated tax payment. ISR Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qaulified purchase does not occur, then the individial would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Income Limit for first home buyers tax credit

are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $7,500, the credir will equal 10% of the purchase price.

Modified Adjusted Gross Income (MAGI) Limit for tax credit qualification

If MAGI is above the limit, do you qualify for tax credit?

Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailble for individual taxpeyers with modifiyed adjusted gross income of more than $95,000 and for married taxpayers filling joint returns with an AGI of more than $170,000

Tomorrow, I will cover how partial credit is calculated...

FHA/Utah Housing

Currently at 5.5%/5.49%
1. easier credit qualifying
2. current max loan amount is $362,790 and FHA loan limit may increase to FNMA limit of $417,000
3. Gift for 3% down payment still acceptable
4. Property requirements are not as tight as they once were
5. 100-106% Utah Housing loans
6. Income limits $70,500 for a family of 3 and requires two scores above 620
7. Down Payment assistance still available (until April 2008)
8. Low monthly Mortgage Insurance- only 0.5%
9. Rates similar to Conventional

Any questions, please call me (Marina-your Real Estate consultant) at 801-649-5883