New Tax Benefit....What Does it Mean for First Time Home Buyer

There is a lot of talk today about the new first time buyer tax credit...but is it really a credit? Nope...it's a loan! Granted it's at 0% interest, but it's still a loan. Please see more information on this below:

How the New First-Time Buyer Tax Credit Works Under the new housing bill, home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500.Here’s how it works:
The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.Source: The Washington Post, Michelle Singletary (07/03/08)

For more information on this and other programs for real estate purchasing please visit www.InvestSmarter.com or www.Richmond-Kentucky-Real-Estate.com