North Texas Real Estate Blog

Recent changes and the extension of the federal tax credit for first time home buyers and current homeowners are providing some advantages to people interested in moving to Southlake and the surrounding areas. Based on recent sales data in the last six months, the average sales price of a house in Southlake TX was 582,000 dollars, well above the surrounding areas. With the income requirements necessary for the purchase of a home at this price, many prospective buyers were unable to take advantage of the federal tax credit.
In order to qualify for the tax credit, the closing of the home must be completed by June 30, 2010. The property must be under contract no later than April 30, 2010, which allows the necessary time period for loan and title work to be completed. The income requirements have also been increased to $125,000 for single tax filers and $225,000 for joint tax filers. Single tax filers with income above $125,000 but below $145,000 and joint filers with income above $225,000 but below $245,000 are eligible for partial credit. First time home buyers that meet these income requirements and that have not owned a home in the past 3 years are eligible for up to $8000 tax credit on the purchase of their home.
Besides income caps being increased, there are new credits available to current homeowners that have owned and occupied a primary residence for a period of 5 consecutive years during the last 8 years. The tax credit available to these qualified buyers is up to $6500. The maximum purchase price of the home may not exceed $800,000, which may help with the cost of their new home. The home buyer must live in the newly purchase home at least 3 years to avoid repayment of the credit. Members of the military, however, do not have to repay the credit if they are unable to use it due to extended duty. Active duty military stationed overseas have an additional year, up until April 30, 2011, to have a signed contract of purchase.
With the increase in income requirements and availability to current home owners, the federal tax credit makes buying your new Southlake home more affordable and provides more opportunities for current homeowners looking to move.