The $7,500 tax credit for first-time home buyers, a provision of the Housing and Economic Recovery Act of 2008, created a monetary incentive to stimulate the housing market.  According to Homes & Money Quarterly Newsletter, “The tax credit will be 10% of the purchase price of a home, up to a maximum of $7,500.  That means if the home costs more than $75,000, first-time home buyers will receive the full $7,500 tax credit.

Sounds good so far?  Yes, except that the buyer will have to pay back the tax credit over a period of 15 years, beginning two years after the credit is taken – which really isn’t that bad if you think of it as the government providing first-time home buyers with an interest-free loan to help them buy a home.

If the home is sold prior to the tax credit being repaid and is sold for a profit, the remaining amount of the credit is due at settlement.  If there is insufficient profit resulting from the sale, the remaining credit due is forgiven.

There are income limits to qualify for this program and it only applies to homes purchased between April 9, 2008 and June 30, 2009.  To learn more about this incentive, CLICK HERE.

Thinking about buying?  Check out our Successful Buying Tips to help you get a good deal.

We work with many first-time home buyers, so if you're thinking that now is the time to jump into the market, call us at 410-215-7131 or email us, so that we can help you get started on this exciting process.

Wishing you sunshine everyday and the home of your dreams,
Jeri