Smart Borrower Blog

First-Time Home Buyer Tax Credit Extended for Veterans


Oct 11th, 2010 @ 10:55 AM by Debbie Dragon


If you or your spouse is a member of the armed forces and has recently served active duty outside of the US for at least 90 days between January 1, 2009 and April 30, 2010, you could still qualify for a first-time Home Buyer Tax Credit of up to $8,000. Using the tax credit in conjunction with a VA loan could save you even more.

If you are unfamiliar with VA loans, they are home loans that are available to active military personnel, veterans and their spouses. VA loans are typically serviced through a mortgage provider who specializes in the loans, and there are a few differences between them and a typical mortgage. First, they are a bit easier to obtain, with the main reason being that you do not have to have a down payment. Interest rates are also usually a little bit cheaper than other home loans. Finally, when you receive a VA loan you will be exempt from paying PMI, otherwise known as mortgage protection insurance. Mortgage protection insurance is required on other home loans without a 20% down payment. Not having to pay PMI can save you $100.00 or more each month on your mortgage payment.

In order to take advantage of a VA loan and combine it with the $8,000.00 tax credit you will first need to get approved for the loan. Your local Veteran’s Affairs office will be able to give you a certificate of loan eligibility. This certificate will tell you the maximum amount you qualify for. You then take this certificate to an authorized VA loan lender who will help you obtain your VA home loan. When you combine the great deal of a VA loan and the $8,000.00 tax credit, it could not be a better time to purchase your first home.

There are a few additional qualifications to be aware of for the tax credit. First, if you are single your income can not exceed $125,000 and if you are married joint income cannot be more than $225,000. If your income exceeds these levels, you may still qualify for a partial tax credit. In order to qualify you must also have a purchase agreement signed by April 30, 2011. You will then need to apply for the credit on your 2010 or 2011 income tax return. Finally, the home you purchase cannot cost over $800,000.

To find out more about how you can obtain a VA home loan visit http://www.militaryunited.com/.

About Debbie Dragon
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.

One Response to “First-Time Home Buyer Tax Credit Extended for Veterans”

  1. Mortgages says:

    Fantastic Work, this will come in handy!

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