If you even thinking about buying a home, now is a great time.  The number of foreclosures and short sales has adjusted the bubble we saw in 2005-2006 and forced prices down, making homes more affordable.  This is bad news for current homeowners.

However, there is another program aimed at 1st time home buyers.  It is a $7500 tax credit and applies to home purchases made between  April 8, 2008 and July 1, 2009.  It either reduces the tax owed, or is a dollar for dollar increase in their refund.

However, this isn't just a free gift of money.  It acts like an INTEREST FREE loan that has to be repaid over a 15 year period.  If you take advantage of this program you must begin repaying the credit 1/15th each year ($500) starting on the 2010 tax return.

So, what is a new home buyer??  Obviously one who has never owned a home, however some in the industry have indicated that if you have not owned a home in the last 3 years, you would be considered a new home buyer under this program.  However, we strongly recommend that you consult a CPA for clarification and verification.  All information contained here is deemed reliable, but not guaranteed.