The Real Estate Encyclopedia
First -Time Home Buyer Tax Credit
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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 ( 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 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 you can also visit his website for additional information at


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