ECONOMIC STIMULUS BILL: $8000 FIRST-TIME HOME BUYER CREDIT
UPDATE: The Federal Housing Administration has now approved home buyers to use the $8000 credit towards the purchase of their home. Call us for more information...
First-time home buyer's can claim an $8000 credit or 10% of the home's value, whichever is less, on their 2008 or 2009 taxes. The credit is refundable, meaning tax filers get a refund of the full amount on the total tax bill. Should taxpayers owe less than credit amount, they will receive the difference via a refund check. To qualify for the credit, a purchase must be made between January 2009 and November 2009. Buyer's may not have owned a home for the past 3 years to qualify as a "first-time" buyer.  They must also live in the house for at least 3 years. Additionally, there are income restrictions: to qualify, buyers must make less than $75,000 for singles and $150,000 for couples (higher income may receive a partial credit). Applying for the credit is easy and only requires tax filers to claim on tax return. No other forms or paperwork is required.  

HOUSING & ECONOMIC RECOVERY ACT OF 2008: $7500 TAX CREDIT

Qualification are similar to the above credit, except that the $7500 must be repaid. Credit can be taken on 2008 or  2009 taxes, for homes purchased between April 9,  2008 and July 1, 2009. It must be repaid within 15 years, starting no later than 2 years following purchase. At no more that $500 per year.