What You Should Know About The First-Time Hombuyer Credit
President Obama has signed into the legislation The Reinvestment and Recovery Act. In the recovery plan is provisions for the First-time Homebuyer to receive an $8000 tax credit. Unlike the previous tax credit. this one does not need to be repaid. If you are a First-time Homebuyer in Massachusetts, maybe it is time to consider a purchase. I have put together an basic ouline of the tax credit, that highlight the key points. 
- The Tax Credit The tax credit for eligible First-time Homebuyers is $8000 or 10% of the purchase price of the home, which ever is less
- Eligible First-Time Homebuyers A First-Time home buyer is defined as a purchaser who has not owned a primary residence in the last 3 years before buying a house. The 3 years i counted from transfer of title to transfer of title. There are also income limits as described below
- Income Limits Single First-time Homebuyers are eligible if there modified adjusted gross income is $75,000 or less. Married couple adjusted gross income must be $150,000 or less. Those who earn more may be eligible for a partial credit.
- Availability The tax credit is only available for First-time Homebuyers who purchase their home between January 1, 2009 and December 1, 2009. Closed and title transferred. First-time home buyer who purchased between April 15, 2008 and January 1, 2009 may still be eligible for the previous tax credit.
- Repayment Unlike the prior tax credit(basically an intrest free laon) this does not need to be repaid. You do need to stay in the house for 3 years or more or you will have to repay the tax credit. Some exceptions might be made for hardships... divorce, death.....
- Refundability This tax credit is also refundable if your tax liabilty is less than $8000.
If you are a First-time Homebuyer and the tax credit is an important reason for purchasing, do not assume you are eligible, consult a tax accountant or attorney. If you are looking for a
real estate agent to represent you as a First-Time Homebuyer please do not hesitate to contact me.