Well it's official.  President Obama signed into law the stimulus package.  What does this mean to home buyers??

The basics are this.  A first time home buyer can get a tax credit equal to 10 percent of the purchase price of the home, but can not exceed $8,000.00.  The purchase needs to have occurred between January 1, 2009 and December 31, 2009.

This is a true tax credit that reduces the tax that one owes and actually goes on the reverse side of zero.  In other words if you get a refund, you get more refund!  This is unlike last years 1st time home buyers incentive which was a loan that had to be paid back over 15 years.  This is a true tax credit, cash in your pocket type of program.

There are a couple of conditions though.  First is that you are not eligible for the tax credit if an individual has an income over $75,000 per year, or as a married couple of $150,000 per year.  Also, you must forfeit (pay back) the credit if you sell the house within 3 years.

As always, I am a LICENSED real estate agent, not a tax professional or lawyer.  Please seek professional advice for verification and tax/legal planning.