I am not an attorney or CPA, but as I read the new HR 3221 act, it seems that the !st time home buyer's $7,500 tax credit is really an interest free loan.
The act indinicates that:
1. A tax credit on a purchase of a new home after April 9, 2008 and before July 1, 2009 is available up to $7,500 in the 1st year if certain criteria are met by 1st time home buyers. (1st time home buyers = Anyone who has not owned a home in the previous three years).
2. Then the buyers must repay the $7,500 tax credit over the next 15 years at 6.67% of the initial credit. (i.e. 6.7% of $7,500 = $500 per year to be paid back to the IRS every year for 15 years).
If true, this should be disclosed to the buyer before taking the tax credit
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