The following information is gathered from www.federalhousingtaxcredit.com. Visit the website for additional information regarding the tax credit.
Who qualifies for the tax credit?
First-time homebuyers – buyers who have not owned a principal residence in the past three years (prior to the date of purchase). The tax credit can be applied towards the purchase of any type of home, however the purchase must be made between now and June 31, 2009.
How much am I eligible to receive?
Individual homebuyers with a modified adjusted gross income (MAGI) of $75,000 or less will qualify for the entire $7,500. Married couples with a MAGI of $150,000 or less, also qualify for the entire $7,500. Individuals with a MAGI of more than $95,000 and married couples with a MAGI of more than $170,000 are not eligible to receive the tax credit. For help calculating how much you are entitled to, see the examples provided for question 7 of the Frequently Asked Questions from federalhousingtaxcredit.com.
What exactly is a tax credit?
A tax credit is similar to a loan that is applied towards what the taxpayer owes. In other words, the money must be repaid back to the government. In this case the tax credit is interest free and must be paid back within 15 years, or when the house is sold.
If you are looking to buy a home, Visit NewHomesSection.com’s new homes for sale.
For additional home buying resources, see the federalhousingtaxcredit.com Home Buyer Resources.
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These can incentives are just whats needed to kick start the market further. I commend incentives such as this.