Buying a home for the first time is very costly, and if you’re the average home buyer, you don’t have a lot of money to spare. The first time home buyer tax credit was created in the United States to help give aid to families who would otherwise not be able to afford a house to live in.

Act with haste if you plan on buying a home in the near future. It is not certain if the tax credit is going to be extended onto the year 2010. If you miss your opportunity, you could be missing out on as much as $8,000 towards your new home. Although logic would assume that there would be a new tax credit enacted for the future, there is not yet any idea if this will happen or if it does, if it will be as beneficial.

When you go to the department store and save 10% you will probably end up saving $5 to $10 on most items. Since homes are so very expensive, the same 10% you get from the tax credit in place could save you thousands. The tax credit is limited to a total of $8,000, but obviously saving $8,000 relieves quite a burden for first time home buyers.

There are some restrictions on who can apply. You should not have previously owned a home, and you can’t make over $75,000 in a fiscal year. If you are married the terms are a bit different, allowing you or your spouse to make a bit more. Those making more than $75,000 and less than $95,000 for a single person can get a reduced tax credit.

Take note that the first time home buyer tax credit of 2009 won’t have to be repaid, unlike the tax credit enacted in 2008. The 2008 tax credit was more of an interest free loan, whereas this tax credit never has to be repaid to the government. Essentially, it’s free money given in hopes the purchase will contribute to the economy.

Not all homes will be able to take part in the tax credit. However, the majority of homes you consider will be. Even questionable homes such as a mobile home will be able to obtain the tax credit. A boat home, which is docked over a body of water, can even qualify for the tax credit. It’s best to check with an accountant before you purchase to see.

Closing Comments

Getting a house for you and your future family is very exciting. Remember that the process can be a long one, so you should get started as soon as possible. Talk to a real estate agent and start looking at some homes in your area and find an accountant in your area.

Learn more about West End Loft Tax Credits and Missouri Tax Credit Projects.