Are you a first-time homebuyer? If so, you may be eligible for up to an $8,000 tax credit targeted directly to first-time homebuyers. I've heard plenty of talk about this new tax credit, so I thought I'd share a little information on the specifics of the program. The best part about the new 2009 tax credit is that it is essentially a grant and is no longer required to be paid back. As a recent graduate and soon to be first-time homebuyer myself, it's refreshing to know that i'm going to be putting a few extra bucks in my pocket, and that I can use the money towards buying furniture for my new home.  I've outlined below some of the stipulations of the program as stated by the IRS:

1. You must be a "first-time homebuyer." To be what the government is considering a "first-time homebuyer," you, and your spouse if married,  must not have owned any other primary residence during the three-year period ending on the date of purchase of your new home.

2. The home purchase must be made on or after January 1st, 2009 or before December 1st, 2009.

3.The credit does not have to be repaid. This stands true as long as the home remains your primary or "main" residence for a period of 36 months after the purchase. *Note: See the IRS website for information on repayment requriements if the home is sold within the 36 months.

4.Income Limitations. The program begins to phase out or only offer a partial amount of  tax credit  if your Adusted Gross Income is greater than $75,000 or $150,000 for joint filers.

The other feature that I found interesting is that the IRS is allowing you to claim the credit on your 2008 or 2009 tax return. So, if you are buying your home in the very near future you may be able to benefit from this program quickly, rather than having to wait until filing your 2009 taxes next year.

Be sure to check out http://www.federalhousingtaxcredit.com to get more detailed information on the program. Also, take a look at the following letter released by the IRS, outlining the program: Expanded Tax Break Available for 2009 First-Time Homebuyers

Remember, it's a buyers market! Interest rates are low, and there's plenty of homes to choose from! If you're looking to buy your first home, now's the time to do it!!