First Time Home Buyer Tax Credit

IF you've been waiting for the right time to buy your first home, wait no longer. THIS may be the best time in history for first-time homebuyers to take the plunge.

What's working for you:

• Affordability is better than ever
• Plenty of homes on the market
• Sellers are more willing to bargain
• Historically low interests rates
• $8,000 first-time homebuyers tax credit

What is the tax credit?
It's a credit for 10% of the cost of your new home up to a limit of $8,000.

Who qualifies?
Only first-time homebuyers. You're considered a first-time homebuyer if you have not owned a home for three of the last five years.

Are there income restrictions?
Yes. Individuals are eligible for the credit if their income is no more than $75,000. For married couples, the limit is $150,000.

What if I make more?
You could still get a portion. Individuals who earn up to $95,000, and couples that earn up to $170,000 can still get a tax credit, based on a sliding scale.

Are there financing restrictions?
Most financing arrangements are acceptable.

Do I have to repay the credit?
No. Unlike the 2008 credit, there is no repayment requirement.

How do I apply?
There is no pre-purchase authorization. You simply claim the credit on your 2008 or 2009 tax return, on the new IRS form 5405.

2008 or 2009? How does that work?
If you buy a house before April 15th, 2009, you can claim the tax credit on your 2008 taxes. If you buy after that, claim it on your 2009 taxes.

Is there a deadline?
Yes. You have to buy and close on your home before December 1, 2009 to be eligible.