Kay, 404-298-5500, Georgia Mortgage Consultant

Thousands of Georgia first-time homebuyers may be eligible for a $7,500 tax "credit."

There are important things you should know, in order to determine if you qualify for this "credit." Here are the answers to frequently asked questions.

What is a tax credit?
A tax credit is a credit that reduces your overall tax liability. With a refundable tax credit, you may actually get money back. For an explanation of the differences between tax credits and tax deductions, please click here.

How much is the first-time homebuyer tax "credit"?
With the tax credit, a Georgia first-time home buyer will get a tax credit worth 10% of the purchase price, or $7,500, whichever is less. So, for example, if you bought a home for $70,000, your tax credit would be $7,000.

Are investment properties eligible?
No. This tax credit is for purchase of a primary home only.

I just bought my home a couple of months ago! Is there any sort of grandfather clause?
No, but you may still be in luck. The credit is open to you if you purchased your home between April 9, 2008 and June 30, 2009.

What's with the quotation marks around the word "credit?"
I've put quotations around the word "credit" because you have to pay it back over 15 years. If you received the maximum credit of $7,500, for example, you'd have to pay back $500 a year.

What if I sell my home before I re-pay the credit? It looks as if the balance you owe will be subtracted from your profit from the sale of your home.

Is this first-time home buyer's tax credit only available to Georgians?
No, it is available to anyone in the United States.

Is there anything else I should know?
Absolutely.

• The standard definition of a first-time homebuyer is someone who has not owned a primary residence in the past three years.
• In order for a couple to take advantage of this credit, both must fit the definition of first-time homebuyer.
• Your eligibility for the the credit also depends on your income. The credit starts to phase out at $75,000 for single taxpayers, and $150,000 for married taxpayers.

Read my articles about the new housing bill and its(HR 3221) effect on Georgia home buyers.

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Posted by Kay, Georgia Mortgage Consultant and VA Loan Specialist.
404.298.5500
25+ years' banking and finance experience.

Helping residents of Lithonia, Dekalb County, and all of Georgia with their mortgage financing needs since 1998.
Specialties: VA Mortgages, GA Relocation Mortgages.

*Not meant to be tax, financial or legal advice. Not meant to be an offer or a promise to obtain a mortgage loan. Please consult a professional for information about your specific situation.