$8000 Tax Credit For Buying Your First Home

Are you a first time buyer thinking of buying your first home? If so, you may want to get qualified and buy sooner than later in 2009 while you can take advantage of the new $8000 housing tax credit. With the passing of the American Recovery and Reinvestment Act of 2009, first time buyers can now qualify for up to an $8000 home buyer tax credit.

This housing tax credit implemented by the Obama Administration and Congress is designed to help stimulate the housing industry across the U.S. Some have criticized this tax credit as not being comprehensive enough as it limits the tax credit to just first time buyers. There are many more current homeowners or recent homeowners who could take advantage of this tax credit if it were open to them. Only time will tell as to the effectiveness of this housing tax credit.

Elements of the $8,000 Tax Credit For Buying Your First Home

• You must be a first time buyer to qualify.


• Unlike the Bush administration housing tax credit of 2008 this home purchase tax credit does not have to be paid back unless the home is sold within 3 years of acquiring the home.


• You must purchase a home as your primary residence.


• You must make your home purchase between January 1, 2009 and November 30, 2009.


• You are only eligible for the housing tax credit if you purchase a home from someone who is not related to you.


• If you make less than $75,000 as a single home buyer or $150,000 as a married home buyer you should be eligible for the full $8000 tax credit.


• The tax credit is for $8000 or 10% of the home's sales price whichever is less. Therefore if you decide to purchase a home that is $75,000 the max tax credit you can claim is $7,500.


• The $8000 tax credit is a tax credit versus a tax deduction.

Additional Housing Tax Credit FAQs

Need down payment and closing cost help: First Time Buying: 3 Ways To Get Money Now

Additonal home purchase loan program to use your tax credit with is the HomePath Mortgage Program.