What you don’t know about the 1st time home buyer tax credit…

If you are betting on getting the 1st time home buyer tax credit you will NOT necessarily receive the full $8,000 credit being advertised heavily by Congress. The credit is a maximum of 10% of purchase price and only available to first time homebuyers Read more

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. Read more

Tax Credit First Time Homebuyer (IRS)

 

Congress recently approved a tax credit for first-time homebuyers that can be worth up to $7,500. The credit, however, acts more like a no-interest loan because it must be repaid to the government over 15 years.

The First-Time Homebuyer Credit can be claimed on Form 5405, which is filed with your 2008 or 2009 federal tax return.

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