CHECK IT OUT!  FIRST TIME BUYER - TAX CREDIT

As part of the Housing Stimulus Bill, Congress created a tax credit for first time buyers who purchase a home prior to July 1, 2009

What is the tax credit? Eligible tax payers will receive a "refundable" credit of up to $7,500 or 10% of the purchase price of their home, whichever is less.

Who is eligible? Any person who has not owned a principal residence in the three years prior to closing and meets the income limitations $75,000 individual and $150,000 for married couples. Also 95,000 individual and $170,000 married can receive a partial credit.

How do I qualify? Meet the definition of "first time buyer" you must purchase and close on a home prior to 7/01/09. Homes, condominiums and manufactured homes qualify.

How do I get the money? You will receive a credit against your 2008 or 2009 Federal income Tax. It will reduce your tax bill and increase the amount of your refund.

Do I have to pay the money back? Yes - but not immediately. The credit is really an interest free loan for up to 15 years. The credit must be repaid at a rate of 6.67% per year starting two years after the purchase. Unpaid balance due at time of sale.

You could actually pay the full $7,500 by increasing your Federal withholdings by $20 per paycheck.

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