The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. This is a great opportunity for first-time home buyers. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. The home buyer is required to repay the credit to the government without interest over 15 years or whenever they sell the house. First-time home buyer is defined in the law as a buyer who has not owned a principal residence during the three-year period prior to the purchase. There are income limitations but even so those buyers would be eligible for partial tax credits. All buyers are encouraged to consult a qualified tax advisor or legal professional to fully understand the benefits and limitations.
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Tanya talks about the real estate market in general as well as specific to real estate agents, buyers and sellers in Loudoun County, Virginia.