Tax Credit for First-Time Home buyers

As part of the Economic stimulus bill, home buyers can now enjoy a tax credit worth $8,000 or 10% of the home's value, whichever is less.  This is definitely an improvement from the current $7,500 tax "credit" which was passed in July 2008 which was really more like a low-interest loan than an actual credit. 

So, how can homebuyers qualify for the credit?

• The purchase must be made between January 1, 2009 and November 30, 2009.    

• Home buyers cannot have owned a home for the past three years.
  

• They must also live in the new house for at least three years.  If not, the credit will be recaptured on sale.

• Buyers must make less than $75,000 for singles or $150,000 for couples.

Read more here.