Obama Lines Up Several Incentives for First Time Home Buyers - Find Out if You Qualify!

Last summer, Congress eagerly passed a bill for first time buyers giving them a financial incentive at the time of purchase (which needed to be paid back) in a failing attempt to help the crumbling housing industry. Needless to say, it didn’t have much of an impact on the market, and in fact made potential buyers wary of getting the incentive. Now, those terms of the bill have been amended to provide a greater incentive. It’s a sort of "sale" to entice those who might want to buy but are waiting for any number of reasons. There are certain qualifications that need to be met in order to get this incentive.

The first requirement is being a "first time" buyer. You must have NOT owned any property used for residential purposes during a three year period prior to purchasing. You can own other property, say a rental or vacation home and still be considered a "first time" buyer.

The maximum amount of the credit is $8,000.00 or 10% of your sales price (the credit will be the lesser of the two). The incentive is for homes purchased in 2009. It will run through December 31, 2009. If you keep the home for a minimum of thirty-six months, there is no repayment. In order to get the maximum credit, married couples need to have a gross annual income of less than $150,000.00. Single people need to make less than $75,000.00. You are still eligible to receive partial credits if your income is over $150,000.00 but less than $170,000.00 for married couples and over $75,000.00 and less than $95,000.00 for single filers. If you are married but file separate returns, you can each claim one-half of the incentive on your tax returns.

If you purchased a newly constructed home in 2008, but it wasn’t ready until 2009, you can still qualify in you take possession in 2009. Your tax professional can help clear up any questions you may have prior to filing your taxes.

For tips and facts about how you can benefit from Obama's Stimulus Package - or to find out if you qualify, visit our no nonsense home buyer stimulus guide: First Time Home Buyer Stimulus.