The Real Estate Encyclopedia
First -Time Home Buyer Tax Credit
Category - Real Estate Information Sources - Real Estate Articles
As part of the economic stimulus package, the government is providing an interest free loan in the amount of $7500 to every first time home buyer that purchases a home between April 9, 2008 to July 1, 2009, in order to stimulate home sales and relieve first time home buyers of the financial burden of getting into a new home.

The great thing about this loan is that it does not carry with it, a monthly payback agreement or any added interest payments. The loan gets repaid by making a payment only one time each year in the amount of $500. You pay the $500 each year when you file your income taxes. Also, the first payment is not due until 2 years after you have received the money.

First time home buyers are not necessarily home buyers that have never owned a home. Thatís right! You are considered a first time home buyer if it has been at least 3 years since you have last owned a home.

The National Association of Home Builders (http://www.nahb.org) has dedicated an entire site to help you make sense of the new economic stimulus package that has been directed at first-time home buyers. The site can be found at http://www.federalhousingtaxcredit.com and can answer all the questions you have regarding this tax credit, from explaining how you qualify to instructions on applying for the credit.

Key points to the First-Time Home Buyers Tax Credit

  • The tax credit is available for first-time home buyers only.
  • The maximum credit amount is $7,500.
  • The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009
  • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
  • The tax credit works like an interest free loan and must be repaid over a 15-year period.

Even if you are someone that does not feel they will need this credit should still apply for the credit as you can always put that money into a savings account as a nest egg.





Contact Neal Harrington
Neal Harrington is a Broker Associate with REMAX Properties in Nashua, NH.

If you are thinking about buying a home and would like to know more about this program, feel free to contact Neal Harrington at 603-821-8268 or by email atNeal@nharrington.com you can also visit his website for additional information athttp://www.mlshomescout.com



References


External Links

www.mlshomescout.com

www.nashuarealtybuzz.com

 
 
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