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According to a source from Mortgage News.......Military Members Can Still Secure Home-Buying Tax Credits

by Chris Birk on 12:12 pm in Mortgage News

The home-buying tax credits that helped the sagging real estate industry stay afloat last year are still available to one final group of prospective buyers: Active duty military members.

But time is running out, which means real estate professionals should jump at the opportunity, especially in military-rich parts of the country.

Service members who served at least 90 days on extended duty from January 2009 through April 2010 may be eligible for the $8,000 credit for first-time buyers or the $6,500 credit for existing homeowners. Service members have until April 30 to sign a purchase agreement and until June 30 to close on the home.

They also face the same general requirements that civilians did, including:

• The purchase price cannot exceed $800,000
• Buyers must be at least 18 years old
• Individuals can’t have an income greater than $125,000; married couples filing taxes jointly can’t have a combined income greater than $225,000
• First-time buyers cannot have owned a home in the last three years

The requirements for the $6,500 credit are the same, except that buyers must have lived in their current home for five of the last eight years.

Thousands of veterans and active duty service members serving in Iraq, Afghanistan and other destinations abroad may be eligible for these tax credits. They can be claimed no matter the loan product.

For many prospective buyers, the VA Loan Guaranty program may represent the most cost-effective path to homeownership. These government-backed loans come with no down payment and feature flexible credit and underwriting standards. VA loan rates are typically lower than conventional rates, and VA loans have no private mortgage insurance or prepayment penalties.