As you may have heard, the Housing and Economic Recovery Act of 2008 provides a great opportunity for First-Time Home Buyers.  A $7500 Tax Credit is now available from the Federal Government.

To qualify for this credit you must be a first-time home buyer and your purchase must close before July 1, 2009.  The law defines a 1^st time Home Buyer as someone who has not owned a principle residence during the three year period prior to the purchase.  If you are a married couple, and one spouse or the other has owned a residence-you are not eligible.  If you own a rental home or vacation property, that is not used as your principle residence, that will not disqualify you.   

The credit really works like an interest free loan and must be paid back over the next 15 years. If you sell the house before the end of the 15 years you must pay back the balance of the loan at that time.

Click here for other frequently asked questions about the tax credit