What Exactly is a First Time Home Buyer?

According to the Department of Housing and Urban Development, a first time homebuyer is defined as not owning a home for the past three years. That opens up the criteria of who will benefit from the new stimulus packages.

First time homebuyers can receive a Gift ... an $8,000 Tax Credit Gift with no repayment. With President Obama signing into law the American Recovery and Reinvestment Act this week, first time homebuyers that close on a home between January 1 and November 30, can request up to an $8,000 Tax Credit, which is not paid back unless the homebuyer moves within three years.

Other features of the program:
1. Tax Credit (additional refund, not just a tax deduction) is up to 10% of the sales price
2. Individuals with income over $75,000 and couples with combined income over $150,000 will have less Tax Credit eligibility
3. Tax Credit can be claimed on this year's tax return, an amended return in 2009, or next year's tax return
4. Buyers can use State Bond programs and qualify for the Tax Credit such as NIFA (Nebraska Investment Finance Authority) Loans.

What a wonderful time for those that are renting or living with relatives, parents that have children that don't currently own a home, and homeowners in prices ranges that normally attract first time homebuyers. This, coupled with low interest rates should be a real incentive to jump back into the housing market.

For more information on finding the right home or advice on listing your property contact bill.swanson@cbshome.com or visit http://www.billswanson.com/ to view listings or request a free CMA.