Housing Bill | First Time Home Buyer Incentives

Posted by Jace Stolfo on Wednesday, August 6th, 2008 at 10:15pm.

The recent housing bill that passed has provisions to help first time home buyers.  If you purchase a home between April 9, 2008 and July 1, 2009 you may qualify for a $7500 federal tax credit or 10% of the purchase price, which ever is less.  Not a deduction but a tax credit.  So even if you only owe $3000 you will receive a $4500 refund.  But before you get too excited, it does have to be repaid over a 15 year period.  So really its an interest free loan.  To qualify for the full tax credit you must earn under $75,000 if you are single or $150,000 married and file jointly.

UPDATE: 2/21/09 READ THIS ABOUT THE 2009 CHANGE

For more information on this housing bill you can read this article by U.S. Department of Housing & Urban Development (HUD).

Leave a Comment