Homeownership is Not for Everybody

But MAN! If you or anybody you know has never owned a home but has been thinking about it, saving up, or dreaming about it, this might be the year to make it happen. With interest rates low, deals on every street (since the housing bubble has burst), and the following information about the First Time Homebuyer Tax Credit, it becomes an awfully tempting way to stabilize a family's housing needs AND support our country's economic stabilization.

First Time Homebuyer Tax Credit
Basics

Up to $8,000 is available to first-time homebuyers as part of the American Economic Recovery and Reinvestment Act (HR 1) which was signed into law on February 17. You can claim the credit on your 2008 tax return if you buy a home in 2009. You can request an extension from the IRS or file an amended 2008 tax return.

Homeownership Tax Credit Basics

• First-time homebuyers who have not owned a home in the past three years.
• Purchased a home between January 1, 2009 and November 30, 2009.
• The home must be their primary residence.
• The home can be a new or resale home, a coop, condo or manufactured home.
• Must live in the home for at least three years (if you sell it before three years, you must repay the credit).
• The credit is 10% of the purchase price (or up to $8,000).

(Source: CFED)