How does the Tax Credit effect home buyers?

At A Glance, the first-time home buyer (someone who has not purchased a home in the past three years) is eligible for a maximum tax credit of $7,500 if they have purchased a home after April 9th, 2008 and before July 1st, 2009. Single income tax payers that make an income less than 75,000 per year and married couples with incomes of $150,000 per year are eligible for the maximum tax credit. The tax credit works like an interest-free loan and must be repaid over a 15 year period.

On July 30th, 2008, the President signed housing bill (H.R. 3221) into law. As part of the housing bill, Congress has made a new limited tax credit to provide incentives for qualified first-time homebuyers.

For more information about this tax credit contact Kris or Tammy Hanson at 636-720-3530 or visit http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf for answers to frequently asked questions about this tax credit.