First Time Home Buyer Credit

Under the recently passed $789 billion economic stimulus package first time home buyers may receive a tax credit equal to 10% of the homes value up to a total of $8,000.  Buyers who have not owned a home during the past three years are also eligible for this tax credit.  Unlike previous programs, this tax credit is not required to be repaid unless the home is resold in the first three years of ownership.  To qualify for this tax credit home buyers must complete their purchase before December first of this year.

Now is a wonderful time to be a first time home buyer.  Priced are down and great deals can be made among the many bank owned properties.  With a mortgage deduction on mortgage interest paid coupled with this tax credit buying a home at today’s prices may be a great financial decision.