What the extended home buyer tax credit means to you..

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers who contract by April 30, 2010 and close by July 1, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” you may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including your new TriStone Home!

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is My Credit Amount Determined?

Your tax credit is determined by tow additional factors:

1. The price of the home.
2. Your income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit.

If My Income Exceeds These Limits, Can I Still Get a Credit?

Yes, you may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as your income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can I Still Qualify If I Close After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, you will have until July 1, 2010 to close. TriStone Homes on average can build your new home in 4 months from time of contract. In order to make sure you have time to build your dream home and claim your tax credit you should be under contract no later than March 1, 2010.

Will the Tax Credit Need to Be Repaid?

No. You do not need to repay the tax credit, if you occupy the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

For more information on the home buyer tax credit visit the website of the Internal Revenue Service at www.irs.gov or call any TriStone Homes community sales or one of our preferred lenders.

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