At Columbus Couple’s First Home, Senator, CHP Underscore How Federal Credit Can Help Strengthen Columbus Real Estate Market
COLUMBUS, OH – November 16, 2009 – (RealEstateRama) — At the soon-to-be new home of Mike Decker and Katie Arends, who used the first-time homebuyer federal tax credit to build their first house, U.S. Sen. Sherrod Brown (D-OH) today discussed how the newly extended federal tax credit can help other Columbus community members purchase new homes. Brown fought in Congress to extend the tax credit through April, which the president signed into law earlier this month.
“Part of the American dream is to own a home, to be part of a thriving neighborhood, and to support the schools and communities in which we live and work,” Brown said. “I’m proud to have fought for the extension of the first-time homebuyers tax credit. This is an important step in our economic recovery.”
Now available through April 2010, the federal credit is fully refundable and limited to ten percent of the purchase price of the home, with a maximum possible credit of $8,000 for qualified buyers who have never owned a home or have not owned one in the past three years. Eligibility is based on income with the credit reduced or eliminated for home purchases after November 6, 2009 by single filers with incomes of $125,000 or joint filers with incomes of $225,000 or more. For homes purchased before Nov. 6, 2009, the credit is phased out for single filers earning $75,000 and joint filers earning $150,000. In addition, a new $6,500 tax credit is now available for homeowners who have lived in their current residence for at least five consecutive years and who buy a new home between December 1, 2009 to April 30, 2010. The credits are not available for homes costing more than $800,000.
Brown was joined today by President & CEO of the Columbus Housing Partnership Amy Klaben, who outlined how the federal tax credit could work to strengthen the Columbus real estate market. Ohio ranks in the top ten states in the nation that have benefited from the tax credit with more than 48,000 Ohio first-time homebuyers utilizing the credit this year. More than 1.4 million homebuyers across the country have applied for the tax credit.
“We have seen the positive impact of the first-time homebuyer’s tax credit as many more people have come to us for our free homebuyer education program so that they could be prepared to purchase their first home with the knowledge that will enable them to be successful,” Klaben said. “We have also had many people purchase affordable homes that we have for sale through Homeport, our homeownership sales division, both in this neighborhood and in other parts of our community. The extension of the credit was crucial as it will keep the momentum in our housing market.”
The first-time homebuyer’s tax credit was initially created through passage of the Housing and Economic Recovery Act of 2008 and first extended through the American Recovery and Reinvestment Act of 2009. The Worker, Homeownership, and Business Assistance Act of 2009, which Brown cosponsored, extends the credit through April 30, 2010, and was signed into law on November 7, 2009.