Our federal government passed the First-time Home Buyer Tax Credit last summer, giving buyers reason to get off the fence and into a home. There are just a few requirements, the first being that you haven't owned a home in at least three years.
If so, and you bought a primary residence in the United States last year after April 9, you may claim a credit of up to $7,500 on your 2008 tax return. If you plan to buy this year, then you’re really in luck, because the government has increased the credit to $8,000 on homes purchased during the 2009 calendar year.
While the initial credit for 2008 required repayment in very increments over fifteen years at zero percent interest, the recently passed legislation eliminates the need for repayment entirely, putting $8,000 cash in your pocket.
While the size of the credit may still be renegotiated, it will be figured as a percentage of the home's cost, up to the current maximum of $8,000, with limitations relating to your individual or household income level. At incomes above the limit, you may still claim the credit at a reduced percentage.
This incentive, combined with low rates, large inventories, and affordable prices, should put a home purchase well within your grasp. Get more details from a trusted real estate agent and begin your search today!