Here’s some up-to-date information for first time homebuyers and the $8,000 [1] tax credit offered by the US Government to stimulate housing.  Under current rules:

• The credit is 10% of the homes value up to $8,000.
• You must be a first time homebuyer (have not owned a house in the past 3 years) and have closed on a home purchase between January 1, 2009 and December 1, 2009 (must settle by the 1st).
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.  The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
• Only works for your principal residence - or in the IRS’s words, “the one you live in most of the time.”  This is not valid for second homes, investment properties or houses outside the United States. However, the definition of “home” is quite broad - it “can be a … houseboat, housetrailer, cooperative apartment, condominium or other type of residence.”

This tax credit is just one more good reason to stop giving your hard-earned money to the landlord every month.   With this credit, the amazingly low interest rates and the drop in home prices, what a great market for buyers!  So. . .buy now. . .why rent?  Visit Teri’s website, [2] www.buynowwhyrent.com to search for homes.

First-time home buyers who purchased a principal residence on or after April 9, 2008 and before January 1, 2009 may qualify for a $7,500 tax credit. [3] Click here for more information.