System-Built Home Buyers Take Advantage of 10 Percent Tax Credit

New Federal Program Gives First-Time Homebuyers a Tax Credit up to $8,000


OKEMOS, MI--(Marketwire - March 5, 2009) - President Barack Obama's $787 billion economic stimulus package now includes an incentive for first-time homebuyers who purchase a home between January 1 and December 1, 2009. The package now includes a new refundable tax credit for first-time homebuyers equal to 10 percent of the home's purchase price up to $8,000. The tax credit is hoped to boost sales in the distressed housing market.

To qualify for the tax credit, the buyer must be a first-time homeowner, or a buyer who has not owned a residence during the three year period prior to the purchase. Single taxpayers may not exceed adjusted gross incomes of $75,000, and married couples may not exceed $150,000. If the credit exceeds the taxpayer's tax liability, the taxpayer is able to receive a check for the difference. The tax credit must be repaid if the first-time homebuyer sells the home within three years.

The average price of a system-built home is just $55,900, allowing homebuyers to take full advantage of the 10 percent tax credit ($5,590). The tax credit is just one more reason homebuyers are choosing to purchase a system-built home.

"Last year, system-built home sales in Michigan totaled 20,558 homes, decreasing only 10 percent from 2007," said President of Michigan Manufactured Housing Association Bill Lettinga. "Used system-built homes are doing great in this housing market and are an especially great option for the first-time homeowner."

System-built homes share all the same features as site-built homes, but cost 10 to 35 percent less per square foot. With system-built housing, the homebuilders purchase construction materials, including interior features and appliances in large quantities to take advantage of volume pricing. Those savings are passed onto the homebuyer.

For more information on system-built housing, visit www.michhome.org, call 800.551.1315 or contact the Michigan Manufactured Housing Association, 2222 Association Drive, Okemos, MI 48864-5978; 517.349.3300.

Contact us for FAQs on the homebuyer's tax credit.

Visit www.michhome.org/pr09-08_sales.html for the most recent system-built home sales stats in Michigan.

Contact Information: Contact: Rachael Biermann Agency: All Seasons Communications Phone: 586.752.6381