Home Buyer Credit

Are you confused about the tax programs for First Time Home Buyers?

Some say you will get $7,500 home buyer credit when this is the first time you will own a home. Others say that you will get $8,000. Some say that you have to pay that credit in installment for 15 years beginning the next year after you bought your house. Still others say that you don’t have the obligation to repay the credit.

The government’s tax aids can be confusing. There’s too much misinformation circulating around and in the end this discourages people from taking advantage of the program and getting their new house. To erase all confusion, here are the basic things that you need to know about First Time Home Buyer credit.

First, you haven’t owned a home for the past 3 years, have a steady flow of income and have not foreclosed property, then you are eligible for the program. If you bought a house in 2008 or 2009, make sure that you go to the Federal Housing Authority because they are the government office in charge of taking care of the tax programs.

2009 is the Best Year for First Time Home Buyers

If you bought a house from April 8 to July 1 of 2008, you are eligible to get tax aid from the government under the Housing and Economic Act. How does this work? This tax credit is not free. The government will give you a loan and you need to pay it back over a period of 15 years. When you receive $7,500, for example for the purchase of your home, you need to pay additional $500 every year during tax payment season.

Now, if you bought a house this year, 2009, you get another kind of tax incentive under American Recovery and Reinvestment Act. Under this new tax program, you don’t need to repay the government. It is like the government giving you money so that you can buy your dream home. You cannot qualify for the program If you earn more than $75,000 if you are single and $150,000 if you are married.

Have you been dreaming of owning a beautiful house? This year, 2009, is the best year to buy one because the government gives incentives for first time home buyers. Take advantage of these First Time Home Buyers tax programs. Living in your house isn’t a dream anymore. You can now turn it into a reality!