7 Things You Should Know

The 2009 stimulus bill favors first-time home buyers and buyers who have not owned a home in the last three years.

Here are 7 Things You Should Know about the 2009 First Time Buyer Tax Credit:

1. Eight Grand: The tax credit included in the legislation is unlike any credit offered in the past. This credit is equivalent to 10 percent of the purchase price of the home capped at $8,000.
2. First-time Buyer Defined: For the purpose of the bill, a first-time homebuyer is somone who hasnt' owned a principal residence for three years before buying a house.
3. 2009: Home purchase must be made on or after January 1, 2009 and before December 1, 2009.
4. Income Limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit and $150,000 for married couples. Those earning more than those thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable", qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the hom erior to the three year period, they will have to repay the credit.
7. Buyers may use WCDA first-time buyer mortgage money if they qualify to do so.