Oct. 16, 2008 - Help for the first time buyer

H.R. 3221: Housing and Economic Recovery Act of 2008

The president signed into law a tax credit up to $7500. In order to benefit from the tax credit for first time home buyers, that was signed into law on July 30th, there are certain things that you must do to qualify.  Here is a short checklist that may help you to qualify for this government benefit: 

• This must be your first home (or you must be an individual who has not owned a principal residence in 3 years)
• To qualify for the full credit, you must earn under $75,000 per year (single) or a joint income less than $150,000 per year.  Incomes over $150,000 may qualify for a partial tax credit.
• You must have bought and closed on the home before July 1, 2009.
• The property must be located within the United States.

What is most important to understand is this credit really is an interest-free loan that must be repaid over 15 years or sooner, if the house is sold. Blogger and Kansas real estate agent, Ron Mowery, provides a very good overview of what this law provides.  You can also find more information at NHAB.