$7500 1st time home buyer credit

Included in the same housing bill discussed in my previous post is a nice little 1st time home buyer tax credit, which in more accurate terms is more of an interest free loan from the government when you get down to the finer details. But hey, after the past couple of weeks with Fannie, Freddie, and AIG all getting government bailouts who doesn't deserve a little government assistance nowadays? I mean is beginning to seem commonplace. I'm still waiting for the bail out of my 401k haircut over the past few weeks.

Any way the deal is 1st time home buyers who purchase a house from April 9, 2008 and before July 1, 2009 are eligible for a $7500 credit off their taxes. The catch 22 is the credit is paid back over the next 15 years that inevitably makes it more of a loan that a credit. If you end up selling the house you will be required to pay back the remaining balance in full, but all in all I say take the money. A 0% loan is pretty hard to come by.

Note: there are a fee income restrictions to the credit.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.