Congress Has Made it $8,000 Easier to Buy a Home

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.

But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and on or before November 30, 2009 are eligible.

The Web site www.FederalHousingTaxCredit.com explains in detail the provisions of the new tax credit. The basic provisions include:


* Provides a tax credit equal to 10 percent of the sale price of the home, up to an $8,000 maximum. Is a true tax credit. It does not need to be repaid, unless the home owner sells the home within three years of the purchase.
* Can only be used with the purchase of a home that will be the buyer's principal residence. It cannot be claimed for the purchase of a vacation home or property to be used as a rental.
* Available to first-time home buyers only. A first-time home buyer is defined as someone who has not owned a principal residence for three years or more.
* Applies to homes purchased by qualified buyers between Jan. 1 and Nov. 30, 2009. The purchase date is the date when closing occurs and the title transfers.


"This new tax credit provides an unprecedented opportunity for people looking to buy their first home," said Brown County Home Builders Association (BCHBA) President Ron Thiesfeldt. "Not only will they receive an $8,000 tax credit, they also will be taking advantage of record-low interest rates, a large selection of homes to choose from and competitive home prices."

House hunters will also find that many builders have inventory that is "move-in ready," and may offer upgrades or other incentives to seal the deal. Also, owners of existing homes who are looking to trade-up or relocate are ready to bargain. And, as a long-term investment, homeownership still remains a solid investment for Americans.

Thiesfeldt warns, however, that this opportunity won't be around forever. "Keep in mind that you have to purchase your house on or before Nov. 30 of this year."

For more resources to help you understand the process of financing and buying a home, visit www.nahb.org/forconsumers or www.bchba.org today.

The BCHBA is made up of dedicated professionals who provide excellence in housing through education and innovation for the betterment of members and our local community. For more information, please visit www.bchba.org
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