Click To View Links

OWCP income and the First time homebuyers Credit

I was a USDA Food Inspector for 25 years and was on the job at the time a drunk lady hit me head on. It ended my career. Because I was no longer able to do my job, the government put me on OWCP and I receive a monthly TAX FREE check from the Department of Labor. My income is approximately $30,000/year.

I live in Maine but am buying a home in Florida as my primary residence. I will qualify for the first time home buyers credit on April 1 2010. (3 years from the date I sold my home)

I am a veteran and qualify for a VA backed, no down payment loan, being financed by Sunbelt Lending in Florida.

My questions are:

1) How do I qualify for the credit if I don't file a Federal income tax form? How do I apply?

2) How could the tax credit be applied directly to the down payment of the home?

3)Because the price of the home is $50,000, am I going to be limited to 10% of the sale price ($5,000) or am I entitled to the whole $8,000?

===ANSWERS===

Hello Friend,

First of all, thank you for asking such pointed questions and allowing them to be shared for others to benefit and learn from. This is a first for me. I had to look up and find out what OWCP income is. Now that I know that, I can offer a little guidance.

First I want to make it clear that I cannot give tax advice. You will need to seek the help of a professional for that.

As far as the tax credit and you qualifying for it. I’m sorry to say but it appears that this credit is for people who have W-2 income. Since it is a tax credit and you are not paying taxes because of the OWCP income, you most likely will not qualify.

However, I do encourage you to seek the help of tax experts since I do not know how long you have been on OWCP income. If perhaps you paid taxes in 2009, you just might qualify. Again, seek the help of an expert in this area.

Your second question was related to using it as part of the down payment on the home. Some lenders will allow this, but you have to check with them. Since it appears you have selected a lender in Florida, you will need to ask. However, if the tax credit is not available to you, that may end the opportunity for you.

The tax credit is for 10% of the purchase price of the home up to the $8,000 limit. So your question regarding a $50,000 purchase, it would be a tax credit of just $5,000 if you qualify.

Probably these are not the answers you want to hear, but look at the positive side of this. As a VA borrower, you still will get a no down payment loan, interest rates are still at all time lows and you get to buy a home you can afford.

I hope this helps, once again I’m not a tax expert and you will need to research this with the professionals. I’ve read over all the documents from the IRS and researched the OWCP income so I could answer you. That’s why it took me a little longer to get back to you.

Best Regards,

Jeff


Comments for OWCP income and the First time homebuyers Credit

Click here to add your own comments

OWCP Income
by: James

I found this information very interesting and helpful.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask The Expert.

New Jersey Grants

Click on Image to Learn More

South Carolina Grants

Click on Image to Learn More

Recent Articles

  1. Mississippi Real Estate Agents

    Sep 25, 17 06:00 PM

    Looking for Mississippi Real Estate Agents? Find the best MS Real Estate Agents and Brokers listed here in this FREE directory.

    Read More

  2. Billy Byrd - Walker Realty & Land Co.- Hernando/ Oxford

    Sep 25, 17 05:56 PM

    If you are looking for someone who will look out for your best interests, Billy is the Realtor for you! Billy will look out for you by putting his extensive

    Read More

  3. Colorado First Time Home Buyer Grants | Programs | Down Payment Assistance

    Sep 18, 17 05:14 PM

    Probing for Colorado first time home buyer grants available to purchase a home? Find the best grants or programs for home buying in Colorado on this page.

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans


Follow Us On Twitter

follow me on twitter