FHA qualified buyers are first-time home buyers who purchase homes between January 1, 2009 and December 1, 2009. A "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the 3 years prior to the purchase.
Eligible properties are: Primary Residential Residences that are single-family homes, condos, townhomes, and co-ops.
The maximum allowable credit for home buyers is $8,000. Each home buyer's tax credit is determined by two factors:
- The price of the home-the credit is equal to 10% of the purchase price of the home, up to $8,000.
- The buyer's income-single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum tax credit.
This is a tax credit and the buyer does not need to repay it, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale. Buyers are required to fund the downpayment of 3.5% themselves before receiving the credit for the closing.
There is a phase out amount for buyers who earn $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. If your income-over $95,000 for singles and over $170,000 for couples, you are not eligible for the credit.