Keystone Custom Homes Clarifies $8,000 Tax Credit for First-Time Home Buyers

Experiencing an Abundance of First-Time Home Buyers, the Company Seeks to Help
Educate Buyers on How the Tax Credit Can Put Them in a New Home
LANCASTER, Pa.--(Business Wire)--
The $8,000 Federal First Time tax credit, enacted by the American Recovery and
Reinvestment Act of 2009, has turned out first-time home buyers in droves,
reports the area`s largest home builder, Keystone Custom Homes.

"But with it has come a great deal of confusion from buyers as to how the tax
credit works, how to receive it, and whether it can be applied to a down
payment," says President Larry Wisdom. "The tax credit is available to a wide
cross section of first-time buyers, and we have been working hard to educate
first-time buyers so they can seize on this rare opportunity to live the Great
American Dream of home ownership this year, while new home prices are at their
absolute lowest."

According to Keystone Custom Homes, first-time buyers need to be aware that the
tax credit is only available now until Dec. 1, 2009 on a closed home purchase.
There are other aspects of the tax credit that are important to first-time home
buyers, including:

* The tax credit is not a deduction. "It`s much better than that," says Wisdom.
With a deduction, you can only write off the deduction against your total
income. So if you make $60,000, you can only reduce your total income by the
amount of the deduction, which really isn`t that much savings. For instance, if
you have an $8,000 deduction and earn $60,000, you still have pay taxes on
$52,000. That`s not much of a savings.

But the $8,000 First-Time home buyer tax credit is dollar for dollar. "So you
actually reduce your tax payment by the amount of the credit. For instance, if
next year, you go to file your taxes and learn that you owe nothing to the IRS,
you will receive a check back for $8,000!" says Wisdom.

* First-time home buyers can receive a short-term loan to use the tax credit
toward a down payment. In late May 2009, the Federal Housing Administration
announced that it will allow eligible first-time home buyers to apply the $8,000
first-time home buyer tax credit to a down payment on a home. This can be done
through no-interest loans now available through FHA-approved lenders in the
Commonwealth. The loans must be paid back using the tax credit, which is applied
to a home buyer`s 2009 tax return. First time home buyers can learn more about
this opportunity by talking to their FHA-approved lender or mortgage broker.
* The first-time home buyer tax credit is available even if you make good money.
The tax credit is available to single first-time home buyers who make less than
$75,000 a year or couples who make less than $150,000 a year. "That income
covers a lot of Americans," says Wisdom. "And it`s also based on adjusted gross
income. So if you make more than those limits, but deductions reduce your income
to those limits, you still might be eligible for the tax credit or a good
portion of it."
* There are ways to receive your tax credit now without applying for a loan.
First-time home buyers in essence can gain the benefit of the up to $8,000 tax
credit this year by reducing their income withholdings to the amount of the
credit. This will allow you to see more cash in your take home pay. And that`s
money can then be used toward a down payment or for moving and other costs
related to owning a brand new home.

"Obviously, a first-time home buyer should check with their accountant before
making any assumptions," says Wisdom. "But right now, we are seeing record
traffic at many of our 24 communities, and much of their interest is due to
exceptionally low prices coupled with the Federal Tax credit. Add that to the
fact that interest rates, while beginning to rise, are still at near-historic
lows, and the combination of these factors makes it the best time in generations
to buy a first home."

To learn more about Keystone Custom Homes and how they can help you purchase one
of their new homes, contact a new home sales advisor at 717-368-9831 or visit
www.KeystoneCustomHome.com.

ABOUT KEYSTONE CUSTOM HOMES

Keystone Custom Homes is one of the top 100 home builders in the nation, ranked
by the industry`s leading trade journal, Builder magazine, and is the first
builder ever to be named America`s Best Builder three times by Builder magazine
in conjunction with the National Association of Home Builders, a 200,000-member
trade organization. America`s Best Builder is considered the most prestigious
award that a home builder can achieve.

Distinguished as Central Pennsylvania`s largest independent homebuilder, the
company is building homes in 24 communities throughout Pennsylvania`s Lancaster,
York, Dauphin, Chester and Lebanon counties.

Keystone Custom Homes` success is driven by the simple philosophy to build above
and beyond for customers, fellow team members and the global community.

Reflecting the company`s core values, a percentage from each Keystone Custom
Homes sale goes to HOPE International, a non-profit charitable network of
microfinance institutions founded by Keystone Custom Homes CEO, Jeff Rutt, in
1997 in Lancaster, PA. Only 12 years later, the now worldwide organization
currently serves over 265,000 active clients. By providing small business loans
and basic business training, HOPE empowers individuals to defeat poverty while
preserving dignity. Because poverty disproportionately affects women and their
children, HOPE International concentrates over 80% of its efforts on women. Jeff
Rutt`s ongoing leadership of HOPE earned him the national Hearthstone Builder
Humanitarian Award in 2008.

Keystone Custom Homes
Press contact:
Gregory FCA
Leigh Sperun
Senior Account Executive
610-228-2108
Leigh@GregoryFCA.com

Copyright Business Wire 2009