If you’re on the fence about buying a home, it’s possible you could soon have extra incentive to jump on over. This incentive comes in the form of a $15,000 first-time homebuyer tax credit known as the DASH Act. If passed by Congress, where it now sits, this bill would put an extra $15K into the pockets of first-time buyers. Sound good? Yeah, we think so, too. Up next are three important things you should know about the DASH Act.
1. You may or may not be eligible
Formally known as the Decent, Affordable, Safe Housing for All Act, the the DASH Act wouldn’t put money in the hands of every first-time homebuyer. To be eligible for the $15,000 tax credit, you must make no more than $100,000 annually if filing taxes individually. Your income can’t exceed $150,000 if filing as head of household, and $200,000 if filing jointly. Also, the credit could cover no more than 20% of the home price, and the home price could be no more than 10% higher than the conforming loan limit. In most of the U.S., the limit on a conforming conventional loan is $548,250. As is typical with homebuyer tax credits, the recipient of this benefit would need to make the home they’re buying their primary residence.
2. The credit would be retroactive
If you’re looking to avoid making an upfront down payment, this $15,000 first-time homebuyer tax credit won’t help much. That’s because it’s not available until after you’ve purchased your home and filed your taxes. The money would be part of your tax return, but it could take more than a year from the day you close on your home to have the funds in hand. The good news is that not all loans require a significant down payment. In fact, some loans don’t require a down payment at all. So, if you’re able to get one of these loans, the retroactive nature of the DASH Act shouldn’t be a dealbreaker on whether you pursue a home purchase.
3. The DASH Act may not become reality
While it’s certainly possible the DASH Act passes Congress, there’s no guarantee it will. And even if it does, it could be a while. So, if you’re looking to buy your first home, don’t wait up for this first-time homebuyer tax credit. Instead, give us a call so we can walk you through your homebuying options. You might be very surprised to find out how much home you can afford. And with that, you’ll be on your way to fulfilling your dreams of homeownership. Let’s connect when you’re ready – hopefully soon!
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