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$7500 Tax Credit for first time home buyers

published on October 10, 2008

For those first time home buyers who are looking for access to additional cash to help purchase your first home, there is a new "tax rebate" program created out of the 2008 American Housing Rescue and Foreclosure Act that may help – but pay close attention to the details.  While the program offers tax rebates (dollar for dollar reduction of what tax payer owes in federal taxes) of up to $7500 for those first time home buyers who qualify to go toward the purchase of their first home, the truth is that it is actually an interest free loan that provides access to cash through a tax rebate that must be repaid interest free over 15 years starting two years after the tax credit is claimed.  To qualify for this interest free loan the first time home buyer must purchase a home (new or resale) between April 9, 2008 and July 1, 2009.  The actual closing of the purchase of the home must occur between these dates.  To qualify the maximum income of the first time home buyers is capped at $75,000 for single taxpayers and $150,000 for married couples.  The tax rebate is claimed on your federal tax return with no pre-approval required, however, prospective home buyers should first consult their tax professional to be sure that they do in fact qualify.  For more information about this program the National Association of Home Builders has posted information on a website found at www.federalhousingtaxcredit.com

Source: This report has been provided by Brian Talley of Regent Property Group, an Austin real estate agent/broker helping those looking to buy or sell Austin homes or lease Austin office space.  The information in this report was provided on the National Association of Home Builders website and commented on in the blog above by Brian Talley of Regent Property Group.  Although the above information is deemed reliable, it is not guaranteed. The information contained herein is subject to errors, omissions and changes without notice.

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