How did that old gum commercial go? “Double the pleasure. Double the Fun.” How about “Double the Savings” with an $8000 grant AND an $8000 tax credit, if you buy a home this year on St. Paul’s east side?
Earlier this year the $8000 Tax Credit to first time homebuyers was announced as part of the stimulus plan. For those who may not have been paying attention, here is a quick rundown of the criteria to qualify for the government housing tax credit:
- The tax credit is for homebuyers buying their first home only. (But buyers are considered first time buyers if they haven’t owned a home in the past three years.)
- The money does not have to be repaid.
- The credit is capped at 10 percent of the home's purchase price with a maximum of $8,000.
- Homes must be purchased on or after January 1, 2009 and before December 1, 2009. (Note not the credit is NOT available until the end of the year. Plan accordingly!)
- Income caps to apply...Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- Additional questions on the $8000 can be answered by CLICKING HERE
Now for the exciting news for Twin Cities homebuyers. In mid-April, the Pohlad Family Foundation pledged up to $20 million to support two Twin Cities neighborhoods hardest hit by the housing and foreclosure crisis. Part of that funding is being allocated in the form of grants to homebuyers in the 55106 zip code in St. Paul and 55411 zip code in Minneapolis. These areas are considered to be the hardest hit by foreclosures statewide, according to the Minnesota Housing Finance Agency.
Anyone who purchases a single-family home or duplex in either of these neighborhoods by the end of the 2009 calendar year will receive $8,000 from the Pohlad Foundation Charity. The money will not have to be repaid if the home is kept for seven years. Also the homebuyer would have to live in the home to qualify for the grant but there are no limits on income.
Here’s where “Double the Fun” comes into play: The funding would be in addition to an $8,000 federal tax credit that is part of this year's federal stimulus package. Distribution of the funds will be through the following agencies:
Anyone who purchases a single-family home or duplex in either of these neighborhoods by the end of the 2009 calendar year will receive $8,000 from the Pohlad Foundation Charity. The money will not have to be repaid if the home is kept for seven years. Also the homebuyer would have to live in the home to qualify for the grant but there are no limits on income.
Here’s where “Double the Fun” comes into play: The funding would be in addition to an $8,000 federal tax credit that is part of this year's federal stimulus package. Distribution of the funds will be through the following agencies:
- Dayton’s Bluff Neighborhood Housing Services of St. Paul Phone 651-774-6995
- Neighborhood Housing Services of Minneapolis Phone 612-521-3581
As many of the homes in these neighborhoods are in foreclosure, first time homebuyers need to be savvy when making there purchase. Get educated on how to buy a home by contacting a REALTOR® that knows this part of St. Paul (or Minneapolis) and how to best negotiate a good deal on a foreclosed or bank-owned home.
Copyright 2009 Teri Eckholm http://www.terieckholm.com/
