First time homebuyers are still entitled to a tax credit for purchasing a home through July 1, 2009. For some more information you can click here.

A brief explaination of the benefits you can expect from this credit is that if you are a first time home buyer (defined by the IRS), you have an income of less than $75,000 ($150,000 if married filing joint), and you bought a new home between April 9th, 2008 and July 1, 2009 you are eligible for the Federal Housing Tax Credit for First time Home buyers.

The $7,500 credit is called a refundable credit. This means it will first be applied towards any money that you owe the IRS. Whatever is left over will be given to you.

The credit must be paid back, however, over the next 15 years (that's $500 a year).

If you sell the house during that time, the remainder of the $7500 must be paid back from the gain on the sell of the home. If you sell the home for a loss, the debt is canceled!

This credit, even with the obligation to pay it back, along with the prices that are currently being asked for homes, makes this an excellent time to buy a home.

For advise and help finding your New Jersey home, contact Diane Testa. Take advantage of her years of experience helping first time homebuyers get into a home.