At the stroke of the pen during the President's recent signing of the Housing and Economic Recovery Act of 2008, opportunity arrived for First Time Buyers. But even beyond that - it is also good news for Sellers of entry-level houses as well. In recent months many folks dwelling in their first homes, had wished they could move up to larger homes, but were thwarted in doing so by a market that wouldn't easily accommodate the marketing of their present home.
For First Time Buyers, there are incentives and tax saving available. Those who purchase homes between April 9, 2008 and July 1, 2009 will be eligible for a tax credit equal to 10% of their home purchase price, up to $7,500. This is in addition to the income tax deductions on mortgage interest and property taxes, already in existence.
First Time Buyers are defined as those who haven't owned a home in the last three years. Also, to qualify for this credit, there are income guidelines of $75,000 for an individual or $150,000 for a married couple.
These new opportunities for First Time Buyers, also present an opportunity for sellers of entry level housing, which should spur a warming of the real estate marketplace.
For more detailed information on the Housing and Economic Recovery Act of 2008, it is available at: Housing and Economic Recovery Act of 2008
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Hi Myrl: You might want to clarify that regarding the tax credit, mortgage interest and property taxes are a deduction. But the tax credit is just that, it's a credit against the amount of taxes due and not a deduction. So, if a person owes the government, say, $8,000, with the tax credit (providing they qualify for the full credit), they now owe only $500.