1. New/First Time Buyers are offered a maximum $8,000.00 tax credit. This credit is equivalent to 10 percent of the purchase price of the home, although it is capped at $8,000.00 and applies only to first time homebuyers and principal residences.
2. First time buyers are considered as such - a first-time home buyer is someone who hasn’t owned a principal residence for three years before buying another home. The date of purchase is typically considered the day that the title is transferred. If you have owned a vacation home but not
a principal residence within the past three years you would still qualify for the credit.
3. The key is 2009. Only those who on or after January 1 and before June 1, 2010 are eligible for the tax credit.
4. What are the income limits? The tax credit is subject to income limitations. Single buyers need an adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds might be eligible for reduced credits.
5. Buyers beware because you have to own the home for at least three years in order to capitalize on the credit. If you sell the home before the three year period you will have to return the credit to the government.