Seattle Mortgage & Housing Market Insights

1. $8,000 credit for first-time home buyers. Sales must occur between 1/1/09 through 4/30/10. Purchase contract must be signed by 4/30/10 and completed by 6/30/10.
2. Income Limits of $125,000 for single and $225,000 for married filing jointly (prior to Nov. 6 09 - limits of $75,000 and $150,000 respectively). Income is defined as Modified Adjusted Gross Income (MAGI).
3. $6,500 credit is allowed for repeat buyers defined as "long-time resident of the same main home". They must have stayed in their principal residence in five consecutive years.
4. Sales must occur between 11/6/09 through 4/30/10 and completed by 6/30/09.
5. Same income limitations as first-time home buyers.
6. Tax Credit is limited to 10% of the purchase price up to the maximum credit.

The following documents are required in filing for the credit:

1. Form 5405.
2. HUD-1 or Settlement Statement.
3. For repeat buyers, prove of 5 consecutive years residence by property tax records or 1098 interest statements for the 5 year period.
4. Certificate of occupancy in lieu of HUD-1 for new construction.

• Credit must be repaid if home buyers sell their houses within a 36-month period after purchase.
• Credit must be repaid if home buyers convert their principal residence to a rental or business property or foreclosure occurs.

Click here for further information.