Part of the government stimulus package passed a few months ago provided first time home buyers with a new incentive to buy a home this summer. This incentive comes in the form of an IRS tax credit worth up to $8000.
This provides a unique opportunity to new buyers that has not existed in the past. Not only are housing prices at multi-year lows, but interest rates on home loans are at all time lows. Compound this with the tax credit that is now available and there has never been a better time to look into purchasing your first home.
There are some restrictions regarding the new tax credit. For instance, the amount of the tax credit cannot exceed 10% of the home purchase price or $8000, which ever is less. Additionally, there are income restrictions. To qualify for the full credit your income must fall within the following limits:
Single Taxpayers - $75,000
Married Couples - $150,000
The good news regarding all of this however is that the money does not have to ever be repaid. This means the US government is effectively paying you up to $8000 to buy a new home before December 1, 2009 as that is when the program expires.
EDIT: This is no longer available to new buyers and expired on December 1, 2009.
If you are in need of a real estate agent, please contact Realtor® Dennis Smart.
Photo Courtesy of: Robert S. Donovan
