Fast Acting Relief

Our federal government passed the First-time Home Buyer Tax Credit last summer, giving buyers reason to get off the fence and into a home. There are just a few requirements, the first being that you haven't owned a home in at least three years.

If so, and you bought a primary residence in the United States last year after April 9, you may claim a credit of up to $7,500 on your 2008 tax return. If you plan to buy this year, then act quickly, because you'll need to purchase by July 1 to make the claim on your 2009 return.

The credit is figured as ten percent of the home's cost, up to the maximum of $7,500, if your individual income is less than $75,000 or household income is less than $150,000. At slightly higher incomes, you may claim the credit at a reduced percentage.

Keep in mind that this is not a "bailout," and in order to be cost effective for taxpayers, this credit must be paid back in very small increments over fifteen years, but not beginning until 2011. Basically, it's an interest-free loan for a fifteen-year term.

This incentive, combined with low rates, large inventories, and affordable prices, should put a home purchase well within your grasp. Get more details from a trusted real estate agent and begin your search today!