Home Buyer Tax Credit UPDATE

With the passing of the new stimulus plan, the home buyer tax credit was modified and increased.

First, the credit is for up to $8000.

Second, it does not have to be paid back unless the buyer sells the property within the first 3 years after the purchase.

The credit is for first time home buyers only (but a first time home buyer is someone who hasn't owned a home in the last 3 years). There are some income restrictions, too.

The best part is the buyer can actually get the money! Here's a quick example: Let's say someone buys a home today and qualifies for the full $8000 tax credit. If their tax return for 2009 says they will be receiving a $1000 income tax refund, they will also get an additional $8000 included in their refund for this tax credit!

If you have additional questions, please contact me or your loan officer.