Elsmere, Delaware – Repeals First Time Home Buyer Transfer Tax Credit – February 9, 2012
Town of Elsmere Delaware repeals the first time home buyer transfer tax credit was repealed on February 9, 2012, by the Mayor of the town of Elsmere and the town council and is effective immediately. The transfer tax in Delaware is 3% of the purchase price which is split equally between the state of Delaware and the county. If the property is in a township, municipality, or city then the county portion of the transfer tax is collected by that entity. New Castle County, Kent County, and Sussex County all waive the transfer tax for first time home buyers if the property is in the county alone. The Town of Elsmere had been giving the waiver as well until Thursday, February 9, 2012.
In a real estate transaction in Delaware, the transfer tax is typically split equally between the buyer and the seller. So 1.5% to the buyer and 1.5% to the seller. The buyer’s portion which is 1.5% is split equally between the state of Delaware and the county. So that is 0.75% tax credit for first time home buyers in the county. So now first time home buyers in the town of Elsmere will have to pay this fee. Here is an example of how much more this will cost a first time home buyer in the town of Elsmere.
Purchase Price = $150,000
Total Transfer Tax 3% = $4,500
Buy Portion 1.5% = 2,250
Elsmere portion 0.75% = $1,125
So in this example the first time home buyer would be paying $1,125 more to purchase this home in Elsmere because of the repeal of this transfer tax credit.
Here is a link to release from the town of Elsmere – FTHB Transfer Tax Credit Repealed in Elsmere, Delaware
If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713