First-time home buyers who purchase homes before December 1, 2009 are eligible for a tax credit of up to $8,000.  To qualify the purchaser my not have owned a residence during the three years prior to the purchase.  The tax credit is only available when buying a primary residence.

The tax credit is determined by the price of the home and the buyers income.  The tax credit is equal to 10 percent of the purchase price of the home, up to a maximum of $8,000.  To receive the maximum credit income for single buyers may have income up to $75,000 and for married couples incomes up to $150,000.

The amount of the tax credit declines as income for single buyers exceed $75,000 up to a maximum of $95,000 and for married couples over $150,000 to $170,000.  Buyers with incomes above these maximums are not eligible for the credit.

The tax credit does not have to be repaid if the buyer stays in the home for at least three years.  If the property is sold during the three year period the credit will be due upon the sale

This in a great program for first time homebuyers and along with attractive rates and the choice of homes on the market make 2009 a good year to for those who have not owed before to buy their first home. 

If you have any questions about the program, feel free to contact me at juliej@jalone.com.