The US Congress wants to help you buy a house to live in.

As you read every word of this article you will discover why the government is offering first time home buyers an amazing incentive to buy a home. You will also learn four reasons why this may be the best time ever to enter the home buying market.

President George W. Bush signed into law the Housing and Economic Recovery Act of 2008. This newest act for the weakened housing market is a reaction to the SOS being sent out by plummeting home prices.

Included in this Act is the temporary tax credit for first time home buyers. If this describes you, be sure to check out the incentive.

One of the most intriguing features in this Act is the temporary tax credit for qualified first time home buyers.

The $7500 tax credit amounts to a dollar for dollar reduction of what the taxpayer owes. Even though you may owe taxes less than the credit, you will still get the difference sent to you by the government.

Here are some of the details.

The tax credit is for first time home buyers only. But don’t quit reading simply because you owned a home in the past. The government has its own definition of first time home buyer.

According to the government if you haven’t owned a home 3 years prior to the purchase of your next home, you qualify as a first time home buyer.

If you are like me, you are probably skeptical when the government wants to give you something. Is there a catch? There is. Keep reading and by the time you reach the end of this article you will know what it is.

My first question regarding the tax credit qualifications was what kind of home can I buy and still receive the credit? Can I buy a new home? The answer is yes. How about a resale home? The answer is yes again.

I began to think this was starting to sound pretty good but before getting too excited I thought I’d better check out some more details.

The maximum credit amount is $7,500. The government wants to credit you $7500 for going out and buying a house. Why? Is it because they are a bunch of really nice people up there in Washington DC? Well, I am not going to answer that question but the US Congress has a definite reason it wants you to buy a house soon.

Here is why this first time buyer credit is important to all of us and may be something you want to take advantage of.

This recent downturn in the housing market has been brutal for many homeowners. Real estate values have fallen. Credit has tightened. Less money is available for homeowners and home buyers. So the government is helping the market get its footing by offering incentives to home buyers. The tax credit to first time buyers is one of those incentives.

To qualify for this government incentive you need to act soon. The offer which began on April 9, 2008 is not open ended. If you want to own a home this may be your window of opportunity but you must act before July 1, 2009.

Most likely we are seeing the formation of a bottom in the housing market. House prices may retreat a little more before we see an absolute national bottom. But in several cities and metropolitan centers, real estate values have remained steady.

If you are a first time buyer you have a lot of things going for you.

First, home prices are low. You may never see such affordable housing again. Prices have slid for now but the fact remains that as long as the United States continues to grow and prosper, the value of our homes will increase over the long term.

Second, interest rates are also low. The last time that we had this type of housing crunch was in 1979. The market conditions were very similar to today except for one thing. Interest rates were high. In fact mortgage rates skyrocketed as high as 18%. Compared to that market, today’s interest rates are cheap.

Third, the cost of homeownership becomes even more affordable for those who itemize income tax deductions.

Fourth, the government is offering you money in order to motivate you to buy a home.

You can qualify for this tax credit up to the full amount if you are a single tax payer with an income up to $75,000. Married couples are allowed $150,000. But you can qualify for partial credit even if your income exceeds the limits.

Now here is the catch I mentioned above. The tax credit works like an interest free loan and must be repaid over a 15 year period.

Essentially the tax credit is a tax free, interest free loan from the US Government to help make buying a home more affordable. The only thing the government asks is that you return the money over the next 15 years or when you sell the house.

Not a bad deal!

Home Buyer Tax Credit Information

Those reading here over the past week know we’ve been obsessing over the about-to-become-law tax credit for first time home buyers. Several iterations were bantered about Congress before the dust finally settled.

First-Time Home Buyer Tax Credit Will be $8000

If you are a first time home buyer in Columbus and you purchase a home before December 1, 2009, you will receive an $8000 tax credit. If you have already.

Stimulus Package Modifies First-Home Buyer Tax Credit

According to the NAR website, the bill provides for a $8000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

The Homebuyer Tax Credit

The Senate has apparently kept the $15000 homebuyer tax credit in the stimulus package. The tax credit sponsors, Senators Johnny Isakson and Joe Lieberman, estimated the cost would be $18.5 billion.

$8000 First Home Buyer Tax Credit in 2009 Economic Stimulus Plan

Unfortunately certain tax breaks, including the homer buyer tax credit, were scaled back to $8000 (from the proposed $15000) to get sufficient support for the stimulus bill’s approval. This is $500 more than the current home buyer tax.

For additional secrets to buying a home with US tax credits, discover why FHA home loans are your key to homeownership.

As always, consult your financial adviser for more information regarding this program and your own personal financial situation.

Good Luck.

This has made it difficult to find the time to look and purchase a house. I’ve been reading up on the tax credit for first time home buyers and found that qualifying military service members may be eligible to receive an extension of one year.

However I am kind of confused on the details. It says that the service member qualifies if he or she has spent a minimum of 90 days outside of the US from December of 2008 to May of 2010.

Does this mean a continuous length of 90 days or a combination? Since 2008 he has spent well over 90 days outside of the US but I do not believe it was for a continuous length of time. Does this mean we qualify for the extension?

Thanks in advance for any helpful information!

How would we go about both filing an amended tax return? I know we need to use a specific form to amend and a certain form for the first time home buyers tax credit, but do we need to mail them in together, or just separately?

Thanks in advance for all helpful advice.

realestatemarketingthisweek.com – $8,000 tax credit for first time home buyers with low down payment – Part 3 – We have back in the studio today Mr. Dan Havey.

Dan and I have worked together in the mortgage industry for about 14 years and we are happy to have him back. He has seen a lot of changes in the market and thanks again for being here.

Michael, here is a question I wanted to ask you, there is so much misconception in the marketplace today as far as what is still available for financing. I think a lot of people have this idea that it is impossible to finance a loan or get a mortgage or that you have to be able to put 20% down or have a 720 FICO score.

Can you let people know whats really going on out there? Well you know a lot of things have gone away. There are a lot of those old loan programs that were fancy ways to sell money and finance real property and a lot of thats gone.

The reality of it is, if a person has a minimal amount of money down, there is absolutely financing through the Federal Housing Administration with 3.5% down. You can buy up to about 8000 with only 3.5% down.

Now with Fannie Mae and Freddie Mac, we actually do have a few investors that will allow us to only put 5% down with those and that loan amount maximum is 7000. So there is still plenty of financing for primary residences.

Do you think that the first time home buyers credit will continue to go on through 2010 and 2011?

Just curious on what people think will happen over the next 1-2 years.

What do you think the housing market will be like in 2011 better or worse? Looking for thoughts and views.

Thanks!

Learn How To Use The Home-buyer’s Tax Credit To Reduce Your Down Payment and eliminate closing costs.

You’ve probably heard about the new-and-improved First-Time Homebuyer’s Credit. It’s a sweet deal that could put money in your pocket.

Even though it’s called the First-Time Homebuyers Credit, you’re eligible if you’ve owned a home before – just not in the past 3 years.

If you buy before April 30th 2010 you’re eligible, the IRS will cut you a check for up to 8,000. It’s tax free money and you don’t have to pay it back.

The First Time Home Buyer’s Tax Credit can be a valuable tool to take advantage of the Calgary real estate market place. Laura Parsons with BMO takes us through the basics of the program and some creative options to utilize it. This tip has been brought to you by CIR Realty (Calgary real estate brokerage). Featuring: Laura Parsons – BMO, Lindsey Smith – Corporate Training Manager. For information on the Calgary real estate market, to search homes for sale, or to learn about the real estate training, support and systems that CIR Realty offers… please visit: www.cirrealty.ca Become a fan on facebook www.facebook.com Follow Us on Twitter: twitter.com

Real Estate Tips Considering a Home Purchase With an investment as large as a home there are many things to consider. Market trends, area information and government programs should all play a role in the decision to buy. Use this Real Estate Tips video to learn why RE/MAX agents are uniquely qualified to help you identify your ideal place.

www.melbourne-loans.com - The first home buyers grant victoria paperwork is complex. Let us help you with this hassle and we will find the best mortgage deal for you.

www.progresshomebuyers.com – First Time Home Buyer Programs Jacksonville! Get up to 25K in Jacksonville Home Buyer Grants that will cover your down payment and closing costs!

Channel 4 – WSMV-TV in Nashville – did a story about the $8,000 first time home buyer tax credit/incentive. Reporter Deanna Lambert interviewed Kathy T. for the piece. You can see the piece linked directly through the news station [www.wsmv.com or watch right here.

I will help you get the First Time Home Buyer Tax Credit in the Billings Area Dial Dana at 406-671-1441 or go to DialDana.com

Visit www.easydenverhomesearch.com if you were waiting for the Denver housing market to bottom out, we might already be there. Also Sam Wilson gives you a couple tips on how to qualify for the $8,000 first time home buyer tax credit.