Q:Â “My name is Ken. I was interested in your listing. However, I had a question on the tax credit. Does this home qualify for the entire tax credit and do I need to take out a mortgage in order to apply tax credit towards purchase? I currently own a business property which I would like to sell.Â I then wanted to apply the tax credit and pay cash on the balance. Can it be done this way?Â Your feedback would be appreciated.”
A:Â Hi Ken, Thanks for your question.Â The first time home buyer tax credit is based on your income not on the price of the home that your purchase.Â There is no stipulation on receiving the tax credit whether you have a mortgage or you pay cash for your property.
Below is a chart and some related postsÂ that will help you learn more about the first time home buyer tax credit.Â I would discuss loan options with your mortgage officer or accountant to see if a cash purchase or loan would be more financially beneficial.Â You may also want to ask your loan officer if your business property would disqualify you for this program.Â According to the consumer guide, you cannot have owned a principal residence in three years.