Facts about the Tax Credit

Great time to buy a home with the TAX CREDIT of $7,500

1. This is a tax credit for single-family homes, townhouses or for a condo buyers.
2. It is for first-time home buyers or if you have not owned a home for 3 years.
3. The tax credit is for 10% of the purchase price, not to exceed $7,500. If you purchased a home for $150,000, your tax credit is $7,500. If you purchase a home for $70,000, your tax credit is $7,000.
4. You receive the tax credit when you file your income tax return.
5. If your tax bill is less than $7,500, if that is your tax credit, you will receive a refund from the Federal Government.
6. This tax credit is technically an interest-free loan for 15 years. If you sell the home before the 15 years are up, you will have to repay the tax credit in full, if the net selling price is more than the original purchase price.
7. You have to purchase the home after April 9, 2008 and before July 1, 2009.
   

Please check with your accountant for more information.

Purchase Price

If you sell the home before the 15 years are up, you will have to repay the balance, if there is any gain over the original purchase price. The payment on the tax credit is not due until 2010 or when your tax return is filed. The payment of the tax credit, if you claimed $7,500, would be $500 per year until it is paid.

Stabilize - Capital - Tax Credit

The Housing & Economic Recovery Act of 2008 will help neighborhoods to stabilize and attract new affordable housing capital. It will also offer relief to families that are in a foreclosure problem. The tax credit of $7,500 will make it possible for many families to afford a new home. It is all part of the housing recovery act. It should help bring about a turn in housing and change the direction that housing is headed right now.