Buying a home for the first time is very costly, and if you’re the average home buyer, you don’t have a lot of money to spare. The first time home buyer tax credit was created in the United States to help give aid to families who would otherwise not be able to afford a house to live in.

Act with haste if you plan on buying a home in the near future. It is not certain if the tax credit is going to be extended onto the year 2010. If you miss your opportunity, you could be missing out on as much as $8,000 towards your new home. Although logic would assume that there would be a new tax credit enacted for the future, there is not yet any idea if this will happen or if it does, if it will be as beneficial.

Buying a home is costly, and even 10% off the total price could equate into thousands of dollars. When buying a home for the first time with the 2009 tax credit, you are able to shave off the 10%, up to a total of $8,000. Clearly this is a substantial amount of money that can bump up your chances at securing a home that you can afford and like.

Not everyone will be able to obtain the tax credit. If you make too much income in a year, you won’t be able to apply. If you are married the rules are a bit different, and instead of a single income the government will look at combined income. In addition, the purchase must be a first purchase for you and your spouse, if you have one, in order to qualify.

Some confuse the 2009 first time home buyer tax credit with a loan. This is because the tax credit of the previous year was more like an interest-free loan that had to be repaid. You can be reassured that the 2009 tax credit will never have to be repaid. The money you obtain from the government will be yours to keep, as long as you qualify.

Not all homes will be able to take part in the tax credit. However, the majority of homes you consider will be. Even questionable homes such as a mobile home will be able to obtain the tax credit. A boat home, which is docked over a body of water, can even qualify for the tax credit. It’s best to check with an accountant before you purchase to see.

Closing Comments

Housing your family is your first concern as the head of the family. If you are not able to do so because of money constraints, this tax credit can help you afford a home. An accountant will have more information to share with you on the subject.

Learn more about Syndicate Historic Tax Credits and West End Loft Tax Credits.