The federal tax credit for first-time home buyers is in full force, but don’t wait too long to begin your search. This tax credit expires by December 1st, 2009. Time is running out! So in order to receive the full benefit of this tax credit, you must first make yourself aware of the details and how this opportunity can easily benefit those of you who are already in the market to purchase a home, as well those of you who have been pondering the idea of home ownership for some time.

First, let’s see what this federal tax credit means for you. Here are the facts. You can receive up to $8,000 in reduced taxes or added income depending on your individual or joint income. That means those individuals making $75,000/yr or $150,000/yr jointly qualify for the full amount. The qualifying amount then begins to decline as individual and joint income increases all the way up to $95,000/yr for individuals and $170,000/yr jointly. Also, unlike in the past in which tax credits such as this served merely as a interest-free loan, this $8,000 tax credit does not need to be repaid unless you decide you sell your home within the first three years. This means $8,000 in your pocket as reduced taxes or added income. How does this work? Even if you don’t owe $8,000 in taxes, you will still receive the full amount of the tax credit. Lets say you only owe $2500 in taxes. After the tax credit is applied, you will receive a refund check in the amount of $5500! That’s money in your pocket that can be used to replenish expenses that come with the purchase of a home such as down payments and closing costs or the furniture needed to fill your new space.

Have you owned a home in the past? You may still qualify! Those who have been homeowners in the past can still qualify for this federal tax credit as long as they have not owned a home within 3 years of making their current home purchase. This means although you may not technically be a “first-time” home buyer, you can still take advantage of the benefits this tax credit has to offer.

Does this motivate you? If so, contact your real estate agent today to discuss your home buying needs. Remember, closing of your home must take effect on or before November 30th, 2009 in order to receive the first-time home buyer’s federal tax credit. There is no better time than now!