I think I have this straight-
First time buyers tax credit Facts
Well, we all know that the bill was signed by the President. But, it still has a long way to go. And I am not so clear on what it will do in terms of helping the buyers. I remember in the 80's a program like this. So as it stands now it seems that the buyer (who qualifies) will get up to $7500 tax credit. The credit works at tax time and is NOT money that borrowers can get their hands on to use for settlement or a downpayment. When the buyer prepares their taxes in April 2009, they will get a credit of up to $7500 which could either make the amount they owe in taxes less or give them more of a refund.
But one thing to remember is this money is not FREE!! They have 15 years to pay back the tax credit interest free which breaks down to $500 per tax year. Again, the $500 will be calculated at tax time and ultimately affect the borrowers tax refund or the amount they. We will have to wait and see what the house and the senate do with this legislation.