First Time Home Buyer Tax Credit

One of the Most exciting provisions of the Housing and Economic Recovery Act of 2008 was the First Time Homebuyer Tax Credit.  The credit was expanded as part of the most recent economic stimulus bill (The American Recovery and Reinvestment Act of 2009).  The credit is designed to encourage first time home buyers to go ahead and make the leap to purchase their first homes.  Combine the tax credit with the fact that home prices and interest rates are at historic lows and it is indeed an ideal time for many first time homebuyers to purchase a home! 

The Home Buyer Credit look like this:

•  For First Time Homebuyers only (defined as not having owned a home in the last 3 years)
• Good on Purchases made between Jan 1, 2009 and Dec 1, 2009
• The Credit = 10% of the purchase price up to a maximum of $8,000
•  For principal residences only and all single family prop types included
• NO REPAYMENT OF THE TAX CREDIT (if prop is kept for more than 3 years)
• If home is sold within first 3 years, tax credit will be recaptured at time of sale