Mortgage Advice

Free money, yes free money for buying a home this year!

You can get a tax credit of $8000 or 10% of the purchase price (whichever is less) that you can claim on 2008 or 2009 taxes if you bought or plan on buying a home this year.

Unlike the first time home buyer tax credit last year, you DO NOT have to pay this money back.  (There are some rules to follow with not having to pay this money back and I have a direct link below to the IRS form that lists these rules).  Add this to the historic low interest rates, surplus of inventory on the market, and home prices being much lower, this is a great year to buy your first home.

This is what's necessary to qualify for the tax credit:

• You must be a first time home buyer.  If you haven't owned a home in 3 years or more, you will qualify as a first time home buyer.
• You buy a home anytime between January 1st, 2009 - November 30th, 2009.
• Single income filers cannot make more than $75,000 per year.  Joint income filers cannot make more than $150,000 per year.  (Higher income buyers may receive a partial credit)

If you bought or plan on buying the home in 2009, you have to follow a few rules in order to qualify in not having to repay the money.

Here is a direct link to the actual IRS Form 5504 that explains all this in detail.  This form has been updated Februrary 2009.

I always like to hear your feedback about incentives like this.  Would this encourage you to buy a home this year?  If not, what exactly are you waiting for?  I like both postive and negative feedback.

Here is a detailed list you can print or save about the tax credit.

2009 First Time Home Buyer Tax Credit

For more information regarding this credit go to 2009 federal housing tax credit.