Obama Stimulus Bill $7,500 Tax Credit for First Time Home Buyers
Back in August of 2008 Congress passed the American Housing Rescue and Foreclosure Act which gave a $7,500 tax credit to first time home buyers. However this tax credit would have to be paid back over the next 15 years. It was basically supposed to be a 0% interest loan to help make buying homes possible. Well, it turns out you might not have to pay back this credit afterall.
Under the new Obama Stimulus Bill this $7,500 credit would not have to be paid off at all. This is $7,500 of free money to first time home buyers. Unfortunately you’d have to wait until 2010 to claim this free tax credit, but hey it’s free money.
There are some stipulations in order to take advantage of this tax credit. The window is open from January 1st, 2009 until August. To be considered eligible you must not have owned a home at any time in the last 3 years and your new home must be used as a primary residence. Also, if you make $75,000 as a single or $150,000 as a couple you don’t get as large of a tax credit. If you make over $95,000 as a single or $170,000 as a couple you’re ineligible to receive the credit.
This stimulus plan seems to have breaks for lower income families for a bottom-up component to help fix the economy. Do you think this will help our economy? Check out our tax saving tips page for savings tips.