First Time Home Buyers' Stimulus Plan

The Federal Government is trying to boost home sales by encouraging first time home buyers to purchase a house. The First Time Home Buyers Stimulus Plan is in place for this purpose, even though many economists blame the home loans taken by over-extended first time home buyers as a part of the current economic mess the United States finds itself in.

Are you worried that you can't afford a house? Worried about qualifying for a loan? Don't be concerned because the government will come to the rescue with this program for first time buyers and those who have not owned their own home in at least three previous years.

The American Dream still involves owning your own home. That is the thinking behind this program, at the same time boosting the housing market through increased sales, energized construction business, and jobs for unemployed construction workers. This program is applied to new construction and pre-owned houses.

A tax credit is available to those who purchase a home between January 1, 2009 and December 31, 2009. It is 10% of the purchase price up to $8,000. You must file for this tax credit within two years from the purchase of the home. This tax credit could be used to pay property taxes or replace money spent on the down payment, which is often what prevents people from making a purchasing decision.

This program is directed to single people earning up to $75,000, or couples earning up to $150,000. It is available in the form of a refundable tax credit, so that you can take advantage of it even if you are not in the tax bracket to pay that much in taxes.

There is much that is hoped to be accomplished with the First Time Home Buyer Stimulus Plan. if you think you might qualify, you should investigate the program. There is no approval to be sought; it is filed on your tax return.

To save your home, click here to learn more about Obama's home stimulus package.