Home Buyer Tax Credit

Were you aware that there is a home buyer tax credit for buying a first home. It is part of the Housing and Economic Recovery Act of 2008 that was signed into Law this past July. Individual’s earning less than $75,000 and couples up to $150,000 can qualify for the full $7,500. Buyers with income of $95,000 to $170,000 may be eligible for partial credit.

If you have not owned a home in the past three years, you can take a tax credit worth 10% of the home’s sale price up to the amount of $75,000 (whatever is the lower amount). What is this program really is is a no interest loan. If you would owe $8,000 for a tax bill then after this credit of $7500, you would only owe $500 but in future years this amount would be paid back on your taxes over a period of years.

This program does not give you cash up front and is not free money but may be of assistance to many new homeowners.

See the following article for more details.

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