If you are a first time home buyer (or not owned a home for 3 years or more) you may qualify for a great tax credit up to $7,500. This credit is like a 0% interest loan – there are some stipulations and a portion of it would need to be paid back if you sold your home. A list of bullet points is provided below;
* The tax credit is available for first-time home buyers only. Purchaser (and spouse) may not have owned a principal residence in the previous 3 years.
* The maximum credit amount is ten percent of the cost of the home and can not exceed &7,500
* Property eligible is any single-family residence that will be a principal residence.
* The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
* There are income limits. 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. Each year 6.67% of the credit to be repaid – if you received the full credit that is only $500.25!. If sold before 15 years than remainder of credit is paid at time of sale.
To view the summary or full bill visit H.R. 3221 Housing and Economic Recovery Act