If you purchase a home on or after April 9, 2008 and before July 1, 2009 as a first time home buyer you may get a tax credit of up to $7,500. Single tax payers with an income of up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
How the tax credit works is like an interest free loan that must be repaid over 15yrs. So lets say you buy home this year and qualify for the credit. If your tax bill is $7,500 and you've been having that amount taken out of your salary. You would get $7,500 back at tax time. Then over the next 15 years you would pay back $500 a year interest free.
You can learn more about the federal housing tax credit at: http://www.federalhousingtaxcredit.com/
This is an awesome opportunity to buy your first home.
There are also other great opportunities for first time home buyers such as the Atlantic County down payment and closing cost grant program. The great thing about these programs is that they are fixed rate 30 year mortgages at low interest rates. And you have plenty of homes to choose from. For more information on the tax credit or other opportunities for first time home buyers please call me at 609-338-3773.