Did you know that the 2009 stimulus package includes a substantial tax break for first-time home buyers? It’s true. So, if you’re planning on buying a house in the near future, this year is the year to do it. You could end up saving a LOT of money. However, in order to benefit from the tax credit, you need to first know how it works and who qualifies. Here are the details you need to know.

1.  What exactly is a first-time home buyer? According to the federal government, and for the purposes of the tax credit, it’s anyone who has literally never owned a home before, or someone who has not owned a home in the past three years.

2.  You must be a U.S. citizen of at least 18 years of age to qualify for the program.

3.  The house you’re considering buying must be in the United States and you must use it for your principal residence.

4.  If you’re a single home buyer, your income must not be more than $75,000 a year. For couples, your income can not be more than $150,000 a year.

5.  The house you’re buying can’t be a gift or an inherited home to qualify for the program.

6.  You must buy the house between January 1, 2009 and December 1, 2009. These are not move-in dates, but dates of actual closing on and taking legal ownership of the house.

The tax credit can be as much as $8,000 in many cases. If you’re a first-time home buyer, you should seriously consider buying this year, as savings like this may not come around again for a long time. To get in on the action, contact your local HUD office for assistance in filling out the appropriate paperwork.