$8000 First Time Homebuyer Credit

So what is this about a first time home buyer credit? Who qualifies? Is it a loan or is it a true credit? All of these are great questions which I will address below.

Here is a quick rundown:

1. The credit is available to first time home buyers or anyone who has not owned a home for the last three years.
2. The buyer must live in the house for at least three years, or they will be obligated to pay back the credit.
3. The purchase must be made between Jan. 1, 2009 and Nov. 30, 2009.
4. Buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

A huge positive and a change from the most recent tax credit that was available is that the newly passed $8,000 tax credit does not have to be repaid. The previous $7,500 credit that was available acted more like a loan which had to be paid back (interest free) over 15 years.

I have also attached a link to a CNN article that is a bit more detailed than this explanation and includes examples of different tax refund scenerios.

http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm?postversion=2009021712

Along with a fantastic inventory, great prices, and low interest rates, this newly passed tax credit makes it the best time in history to buy a home!

As always, consult your tax advisor for your particular tax situation but I am always available should you have additional questions. Just shoot me an email, text message, or phone call.

Have a great Wednesday!

Eric