House Warming 

Federal tax credit for homebuyers extended to April.

Agent Melissa Hayes says she can thank Uncle Sam for helping her sell 25 houses to first-time homebuyers last year.

"Even in this economy, business has been steady," the Crye-Leike agent said.

To help prop up the beleaguered housing market, the federal Recovery and Reinvestment Act of 2009 initiated a tax credit for first-time homebuyers of up to $8,000 or 10 percent of the purchase price of the home. Condos, townhouses, mobile homes, and houseboats up to $800,000 all qualified as long as they were used as a primary residence.

To qualify for the credit, first-time homebuyers had to earn less than $75,000 annually if single and less than $150,000 if married and could not have owned a home in the past three years.

"The majority of the people I worked with have been first-time homebuyers," Hayes said. "The houses they've purchased have been around $120,000 to $150,000."

After hearing about the program, Bryan Tushek and his fiancée Storey Rowe decided to purchase a four-bedroom home for $200,000 in May.

"It was probably around March of last year when I heard about the credit," Tushek said. "I was already thinking about purchasing, but that jump-started it. We decided to purchase earlier than we had planned."

The program was set to expire in November of last year, but Congress extended it through April and expanded it to include existing homeowners.

"We saw a push when people thought they had to close by the end of November," Hayes said. "But now people who own homes are excited."

Along with the other changes to the program, a first-time homebuyer now can earn up to $125,000 a year if single and up to $225,000 if married.

Existing homeowners wanting to take advantage of the $6,500 tax credit must meet the same salary requirements and have lived in their current house for at least three years.

Although the extension expires at the end of April, binding contracts to purchase houses made by April 30th will be eligible as long as the closing dates are by June 30th.


Showing 1-1 of 1

Add a comment

Subscribe to this thread:
Showing 1-1 of 1

Add a comment

    • Creative Process

      Memphis Brooks Museum of Art leader talks about the decision to consider leaving Overton Park.
    • Fun Money

      Locals, tourists invest in good times here.
    • Hate Speech

      Rhodes student pens ‘hate-filled’ opinion piece on alt-right site.


News Blog

Supreme Court Steps In on Fayette Church Matter

Intermission Impossible

Muhammad Ali Meets Stepin Fetchit at The Hattiloo Theatre

News Blog

Task Force Considers Medical Cannabis

News Blog

Trolleys Return to the Tracks for Testing

Music Blog

Jessi Zazu: In Memoriam

Beyond the Arc

Deflections: The Roster, TV Angst, and The Buy/Sell Clause

Film/TV/Etc. Blog

The Vietnam War

We Saw You

Cooper-Young Fest, Big Bugs, Art of Caring

Music Blog

Linda Heck: Bound to ExCITM tonight

Intermission Impossible

A Memory of Charles Billings


More by Erica Walters

  • Earth Angel

    Local company creates an elaborate ride.
    • Dec 24, 2009
  • Corn on the Car

    Local woman distributes "kernels of truth" about genetically modified crops.
    • Dec 10, 2009
  • Generosity Saves

    A 100-year-old nonprofit rallies.
    • Dec 3, 2009
  • More »

Readers also liked…

© 1996-2017

Contemporary Media
460 Tennessee Street, 2nd Floor | Memphis, TN 38103
Visit our other sites: Memphis Magazine | Memphis Parent | Inside Memphis Business
Powered by Foundation