The buzz about the first time homebuyers "credit' seems to have died down a bit since it was first announced as part of the Economic Stimulus package.   Most buyers don't know what it is and whether it is a good deal for them or not.  So lets take a look at some of the hurdles and see if it is the right deal for you.

The first hurdle you come to is the qualifying income limits.  If you are single and your adjusted gross income is more than $75,000 you are not eligible.  If you are married and your combined adjusted gross income is over $150,000 you are not eligible.  If you passed that hurdle then we move on to the next one.

The definition of first time homebuyer means if you have never owned a home OR if you have not owned a home in the last three years.  If you pass that hurdle then we move on to the next one.

The "tax credit" is not really a credit but an interest free loan.  Over 15 years of homeownership you will repay the government at the rate of $500 per year.  If you decide to sell the home prior to the 15 year timeframe then you will need to repay the remaining balance on the "credit" from any profit from the sale of the home.  If this hurdle doesn't trip you up then you could be on your way to using the tax credit for your new home purchase.

If you want to take advantage of this tax credit you need to start your house hunting now.  The credit is in place for home purchases between April 9, 2008 and July 1, 2009.  If you complete your home purchase before you file your 2008 taxes you may still be eligible to use the credit on your 2008 taxes.

With my team of reliable local mortgage professionals we can work with you to determine the best loan for your needs and whether the tax credit is one that you should consider to help you with your purchase.  Give me a call and we can meet over a cup of coffee and see if a NEW HOME in the NEW YEAR is the right plan for you.

More details on the First Time Home Buyers Tax Credit