Military Families Week: Veteran Homebuyer Tax Credit Ending

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military families weekAttention all servicemembers: The Veteran Home Buyer Tax Credit expires on April 30, 2011. While the homebuyer tax credit program was closed to the general public in 2010, the program was extended for members of the military who served on "qualified official extended duty service outside of the United States" for at least 90 days between Dec. 31, 2008 and May 1, 2010.

The extension essentially gives military members who served overseas an additional year to take advantage of the up-to-$8,000 homebuyer tax credit. But to qualify, veterans must enter a contract on the home by the end of April and close by June 30.

(Learn more about the tax credit after the jump.)
Military members buying their first home are eligible for an $8,000 tax credit, or 10 percent of the home purchase price– whichever sum is smaller. Repeat buyers are entitled to a $6,500 credit or 10 percent of the purchase price.

Additional details can be found on the IRS information page, but here are some restrictions to keep in mind:
  • To receive the credit, purchasers must attach a properly executed settlement statement to their tax return.
  • No credit is available if the purchase price of the home exceeds $800,000.
  • The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
  • If married, a qualifying servicemember's spouse is also entitled to the tax credit.
Combined with the low down payment requirement and other benefits of a VA home loan, qualifying veterans are in a great position to buy this season. If you're a servicemember looking to buy a home, don't let this rare opportunity pass you by.

For more details on the Veteran Home Buyer Tax Credit, visit the IRS information page.

For more coverage from Military Families Week, visit our sister site, AOL Jobs.

To learn more about veteran home buyer programs, check out these AOL Real Estate stories:
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