To apply for The First-Time Homebuyers Tax Credit, a binding contract must be entered into on or before April 30, 2010, and the closing must take place before June 1st.
To qualify, a single homeowner must make less than $125,000 a year and homeowners filing jointly must make less than $150,000 annually. The purchase price of the home cannot exceed $800,000.
The credit allows first-time homeowners-those who have not owned a principal residence for the past three years-to claim 10% of the purchase price, up to $8,000.
Additionally, in November 2009, the First Time Homebuyer Tax Credit was expanded to include a tax credit for 10% of the purchase price of the home-up to $6,500-for homeowners who have lived in their homes continuously for five out of the previously eight years.
For more information about the First-Time Homebuyer Tax Credit, visit www.federalhousingtaxcredit.com