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:
- 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.
Other Articles that might be of interest:
- With Harold's Purple Crayon My Dream Home Would be a Snap!
- We Don't Need an Agent!-First Time Buyers Find Their Way Home
- Top 3 Big Mistakes Made by Rookie Foreclosure Buyers
- FIRST TIME HOMEBUYERS! Affordability and an $8000 Tax Credit Make NOW the Time to Buy!
Need additional information on buying a St. Paul home? If you are buying or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet, Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota..JPG)
Buying a Home? Check out my new HOME BUYER'S BLOG!
Copyright 2009 Teri Eckholm http://www.terieckholm.com/
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If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet or FREE Homebuyers Success Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Buying a Home? Check out my HOME BUYER'S BLOG!
Copyright 2012 Teri Eckholm http://www.terieckholm.com/
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Great use of tax money. Stimulate every facet of the local economy. I don't know how that would work here because we have so many competing jurisdicitons. But, I'm sure it would work.
Lenn--These two areas really need a boost. When I was in grade school we lived in the 55106 zip code near Mounds Park. Our home was demolished when they expanded 94 and we moved to North St Paul. This area is very near the downtown St Paul area and 3M complex and with this additional aid to stimulate, the area has the potential to become the gem it once was!
Hope you sell some homes on the East Side this month (May)!
Wendy--I usually sell more homes in the north metro but still wanted to get the word to buyers about this incredible opportunity. :)
Teri.
If that doesn't get Buyers moving, I don't know what it will take. What a wonderful opportunity!
Teri - Buyers could not ask for more incentives to make a buying decision, I hope there won't be regrets come December. Here is hoping you will be instrumental in help some of these buyers find a home.
Good post.Hope buyers read it and take advantage of the tax credit.
Cynthia--It is a very great way to rebuild these neighborhoods and give some first time buyers an additional boost!
Jennifer--I agree. I think there are people who will procrastinate and will be disappointed come the end of this year when these programs are history.
Gita--Thanks...I too, hope many people take advantage of this very unique and money saving opportunity to become a homeowner.
This is a double incentive. You've done a really good job of calling attention to it and promoting the area too. Hope everyone thinking of buying in that area reads this.
Teri,
Buyers are starting to understand what this credit mean to them. It's about time :)
Judi--I have a similar hope...or at least if they do not know about it that their agent is professional and knowledgeable enough to know about it.
Marzena--I think the word is getting out...Hopefully people are paying attention to the time constraints associated with the deal too.
Hi Terri: This is totally amazing .... what a great foundation that's totally addressing the biggest needs for people - being able to afford a home! Twin City citizens are lucky to have that support!
Did I hear correctly that the Secretary of HUD announced that the $8,000 tax credit can now be used as the down payment? Great news if true.