Knoxville Tennessee Real Estate Blog

This beautiful northwest Knoxville home is priced at only $162,900

If you’re looking to buy a house this year the $8,000 federal tax credit expires at the end of November this year. That means the transaction has to be closed and your name on the deed before the close of business on November 30th.

With loans taking 45 to 60 days to process now you will need to have your house under contract not later than October 15th of 2009 to take advantage of one of the greatest home buying perks in recent years.

Most buyers qualify for this tax credit so if you’re a potential buyer you need to know about how this works and see if you qualify.

First of all it’s a tax CREDIT instead of a tax DEDUCTION. Here’s the difference. With a deduction you can deduct (subtract) a percentage of that amount from your taxable income to reduce it. With a tax credit you get to subtract all of it ($8,000 in this case) from your tax liability so a credit is a far better deal than a deduction.

Here's a great west Knoxville 3 BR home complete with rocking chair front porch

Most single buyers with an adjusted gross income (AGI) of $75,000 or less will qualify and married buyers with an AGI of $150,000 or less will also qualify. The credit phases out as your income rises above these limits but a typical buyer will still qualify for some or all of the $8,000.

Some lenders will actually loan you up to $8,000 up front to use for your closing costs or down payment. FHA down payment requirements are only 3.5% of the purchase price so $8,000 will go a long way toward paying them for you.

Take a look at all of Knoxville’s Realtor listings for sale including foreclosures, short sales, handy man specials, and move in ready homes and condos at www.KnoxvilleHomeCenter.com. Call or email me to see any of them or with any questions.

Bargain priced Knoxville area 3 bedroom home listed at $212,000

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