Well, the government has really come out with a great program this time. They are offering a $7,500 tax credit for first time home buyers. A first time home buyer is someone who hasn't owned a home for the last 3 years. This is a "Credit" not just a deduction. There are a few things to be aware of. For example, there are income limitations for eligibility, along with a payback period. 

To be eligible, the purchase must occur between April 9, 2008 and July 1, 2009.  Also, to take advantage of the full tax credit, a single person income would need to be $75,000 or less. There is a phase out of the credit up to $95,000 income, at which point the buyer would not qualify for a tax credit. For  a married couple, the phase out begins at $150,000 and go to $170,000.

The tax credit does need to be paid back beginning in the second year after the purchase. It is paid back over a 15 year time period. For example, if the tax credit claimed was the full $7,500, then 2 after the purchase a $500 annual payment would kick in. Because of this, this tax credit can be thought of as a 0% interest loan.

Now is the time to Apply for a loan preapproval!



$7,500 Tax credit for First Time Buyers

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

* Licensed by California Dept. of Real Estate.  Lic. # 01190897