Live on the Red Line - Real Estate

More on the First Time Homebuyer Tax Credit...

Key Features of the $8,000 First-Time Buyer Tax Credit

Amount of Credit: Lesser of 10 percent of cost of home or $8,000.

Eligible Property: Any single-family home used as a principal residence.

Eligible Buyers: First-time buyers or those who have not owned a principal residence in the previous three years.

Effective Dates: Purchases made on or after Jan. 1, 2009, and before Dec. 1, 2009.

Repayment: No repayment unless home is sold within three years of purchase.

First Time Home Buyer Tax Credits...

Download First Time Home Buyer Tax Credit chart

Download First Time Home Buyer Tax Credit FAQs

***Download these two files for more valuable information on purchasing your first home this year!

Valuable Information: First Time Homebuyers MUST READ

The American Recovery and Reinvestment Act that was recently signed into law could be the key to achieving the American dream of homeownership for many first-time buyers. The stimulus plan includes a new and improved version of a first-time buyer tax credit originally passed last summer.

The 2009 first-time buyer tax credit includes these enhancements, and applies to any buyer who has not owned a home in the three years prior to their 2009 purchase:

• The maximum tax credit amount was increased to $8,000 from $7,500.

• Buyers are no longer required to repay the credit.

• The time during which first-time buyers can benefit from the credit was extended by five months. It now applies to purchases of principal residences made on or after Jan. 1, 2009, and before Dec. 1, 2009.

The passing of this legislation is very positive news for anyone looking to buy or sell a home. Specifically, first-time buyers can now take advantage of the improved tax credit in addition to today's historically low interest rates and a large supply of homes to choose from.