First Time Home Buyer Tax Credit

This is really good information for anyone wanting to purchase homes as a first-time home buyer! Real Estate is still the BEST investment and in trying to stimulate first time home buyers to purchase, this year we have the $8000 Home Buyer Tax Credit.

Last year, there was the $7500 Home Buyer Tax Credit, but this one had to be paid back to the government. This $8000 tax credit does not have to be paid back - it is YOURS! But, if you sell the house within three years of the purchase date, the entire tax credit must be repaid.

This credit applies to homes purchased by first-time home buyers between January 1 and November 30, 2009. WHO IS CONSIDERED A FIRST TIME HOME BUYER? Anyone who has not owned a home in the past three years; any unmarried couple who jointly buys a home, if one person owned a home within the last three years, and the other did not, then the one who did not can claim the credit!

The home being purchased must be a principle residence. This applies to single family homes, townhomes and condos, manufactured or mobile homes.

The actual credit is 10% of the home's purchase price or a maximum of $8,000. There are income levels associated with this, so I always advise to check with a tax accountant for complete information.

NOW is the time to buy folks! Don't throw your money away on rent! Own your own home.