It’s official.  If you are a first-time Reno Nv. home buyer and you buy a Reno home, or bought a Reno home, between April 9, 2008 and July 1, 2009, you will get a refundable $7,500 tax credit. 

However, there are a few things you need to keep in mind about this credit.  First, it only applies to homes that you are going to live in yourself, not investment properties or second homes. 

Essentially, the bill (the Housing and Economic Recovery Act of 2008) states you’ll get a credit for 10% of the purchase price or $7,500, whichever is less.  Because our median home price here in Washoe County is $301,000 (according to a Reno Gazette article from July 2008), that pretty much guarantees that you’ll be getting the full $7,500.

Here’s the deal though, you have to start paying back this $7,500 in the second year you own the home.  You will have 15 years to make the repayment, but if you move before then, you have to pay the remainder back in full.  There will be no interest due though, so it’s sort of like a “free” loan. 

 Like many tax breaks, this one phases out as income increases.  The phase-out starts for married folks with $150,000 in adjusted gross income and singles with $75,000 AGI.  Personally, I think this credit is a great thing.  Yes, you eventually have to pay it back, but there’s no cost (interest) involved.  So have you been on the fence about making your first home purchase here in Reno Nevada or Sparks Nevada?  I say jump off it now.  Rates are still historically low.  Realistically, any mortgage rate under 7% is low.  And homes prices in Northern Nevada are still great.  The statistics are pointing to us having probably hit the bottom of the market (in the 2^nd quarter of 08 the median home price in Washoe County actually went up .3%).  So if you’re waiting for prices to get lower and rates top drop, I’d say you may have missed that boat. If you’ve ever got questions about home loans in Reno/Northern Nevada, please don’t hesitate to drop me an email (shanna@platinum1st.com) or give me a call (775 762 9114). Until next time,Stephanie Hanna your Reno Mortgage Broker.

Local Reno Home Loan Lender Specializing in First-time Homebuyers, FHA loans and Jumbo Loans

Platinum 1^st Mortgage

Reno, NV

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