First Time Homebuyer Tax Credit

The "American Recovery and Reinvestment Act of 2009” passed the House on February 13, 2009 and was signed into law on February 17 by President Obama. One of the key features of this bill is the improvements made to the First Time Homebuyer Tax Credit. The credit is now truly a credit (it does not require payback as long as you stay in your home for 3 years), in the amount of 10% of your home's sale price up to $8,000.

Read more from realtor.org -

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)

Frequently Asked Questions (PDF: 483K)

NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit (PDF: 319K)

Sounds pretty good, huh? Well, if you have not owned a home in the past 3 years you are in luck because you qualify! So let's get house hunting!