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President Obama recently signed the new stimulus package which among other things improves the previous $7500 tax credit from the IRS for FTHB,s. Following are some of the benefits of this provision:

• The credit is now $8000
• Does not have to be paid back! This is huge.
• It is for FTHB's only. An FTHB is someone who has not owned property during the last three years.
• There are some income limitations as follows: $150K maximum for couples and $75K for singles. Higher salaries up to a maximum would cause the credit to be prorated accordingly.
• For purchases made between Jan 1st 2009 and Nov 30th 2009
• You have to stay in the home for three years.

It is important to note that this money will be available AFTER you purchase your property. However, if you can get a gift from a relative or even a loan from your 401K you can pay it back after you get your refund.

You claim your credit with your tax return of 2008 or 2009. If you have already filed your 2008 return, you can always do an ammendment to claim it this year. The information contained herein is considered accurate but not guaranteed. It is intended to educate the consumer and should not be relied upon to make a purchase decision. Consult a tax professional for advice before making any purchase decision.