Tax credit for 1st-time and experienced homeowners~

Today's Seattle Times' syndicated column by Kenneth Harney offers a clear, concise description of the $6,500 federal tax credit available to repeat home buyers. Lots of people have heard of and benefitted from the "First-time Homebuyer Credit" of $8,000 that Congress extended until June of this year. Column: $6,500 tax credit available.

But fewer people are aware that if you've lived in your home for a consecutive 5 of the last 8 years, you could qualify to receive up to $6,500 credit against your 2009 or 2010 taxes when you buy another principle residence. The paperwork required is fairly straightforward--a HUD-1 Settlement Statement from a closed transaction anywhere between November 7, 2009, and June 30, 2010 (in contract to purcase before April 30th,) and proof of your prior residence.

There are some income restrictions, but essentially this is easy money. If buying a new home is in your plans this year, it may make good sense to act sooner rather than later. Furthermore, interest rates are still low--below 5% again for conforming loans with 1 point. In this buyer's market, it's not uncommon to negotiate to have the Sellers pay down the loan rate.

Here's a gorgeous home I have listed that just had a $51,000 price drop to $799,000. It's beautifully located on Tiffany Meadows, a quiet street just off Ferncliff on Bainbridge Island. It's .5 miles to the ferry terminal, and under a mile to the center of Winslow village shops and restaurants. The home has a lovely view of the 10th green of Wing Point Country Club and the home and gardens are professionally designed with an artist's eye. Here's a link to a full preview: Tiffany Meadows home. This would be a great place to call home, and pocket $6,500 at the same time. For a link to all properties available on Bainbridge Island, please click here.