First-Time Homebuyer Tax Credit

Major modifications are being made to the First-Time Homebuyer Tax Credit in the American Recovery and Reinvestment Act. The final vote, as of this date, has not been taken. If passed the following changes will be made.

• Maximum amount of credit will be raised from $7,500 to $8,000
• No repayment for purchases made after January 1, 2009
• Applied to all first-time principle home purchases made before December 31, 2009
• If home is sold within three years of the purchase date the entire grant is recaptured in the sale of the home.
• Retroactive - The changes will apply to all first-time home purchases made in 2009

If you're not currently thinking of buying your first home, you should be.